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MULTIVARIATE STATISTICAL ANALYSIS OF REGIONAL ECONOMIC DISPARITIES AT DISTRICT LEVEL IN SERBIA

Starting from the fact that pronounced differences in the level of development of regions within a particular country can have a serious and significant (negative) impact on its socio-political stability, as well as the performance of the national economy as a whole, it is very important to create conditions for ensuring balanced and sustainable regional development. Due to its pronounced multidimensional nature, the analysis of regional economic disparities is a very complex and statistically demanding task. In this paper, a multivariate methodological framework for the classification of districts in Serbia according to the achieved level of economic development, into internally-homogeneous / externally-heterogeneous groups, based primarily on the application of hierarchical agglomerative clustering procedure and examination of interdependencies between five selected relevant economic indicators, is presented. The statistical validity of the obtained "optimal" classification of districts is additionally tested and confirmed with the results of one-factor multivariate analysis of variance. The resulting categorization clearly and unequivocally confirms the presence of pronounced inequalities regarding the achieved level of economic development between NUTS 3 level territorial units in Serbia, and the existence of regional economic polarization, primarily in direction "developed north – undeveloped south".