The Impact of Lithuanian Regional Policy on the Level of Socio-Economic Development of Its Regions

Abstract

Goal – the subject of research in this study is the regional policy of Lithuania, which aims to support the balanced socio-economic development of all regions and cities. Persistent disparities in the development of regions constitute a significant challenge for the national regional policy. The main objective of the research is to demonstrate the importance of Lithuania’s regional policy in reducing the spatial disparities in the country. Research methodology – the following research methods were used to achieve the set goal: analysis of background data, statistical analysis and comparative method. The source of information include the data from Statistics Lithuania (SL), reports of the Ministry of Finance of Lithuania and other analytical studies for the period 2012–20221. Score/results – the authors assumed that regional policy in Lithuania is not very effective in reducing regional polarisation. The results of the conducted research showed persistent interregional differentiation at the county level. The pursuit of achieving socio-economic cohesion is mainly realised through the European Union funds. The planned distribution of these funds under the 2021–2027 multiannual financial framework may result in further consolidation of uneven development at the national level. ‣‣Originality/value – the analysis carried out in the article made it possible to assess the differences in the socio-economic development of Lithuania’s regions, as well as to determine the direction of changes over the past decade. The identified disparities in regional development raise the question of the effectiveness of Lithuania’s regional development policy in ensuring sustainable development of the country. Thus, the article contributes to the scientific dis cussion on this topic and draws the attention of policy makers to the need for changes in the structure of financing regional development, which currently leads to the perpetuation of regional disparities.