Though a country's economy is growing, separate regional development disparities could be even more significant. This paper aims to identify the situation of inequality of Lithuania's regions, taking into consideration the most important factors of regional economic growth and investments....

By studying the interaction between social capital and decentralization, we show that political decentralization can be a source of divergence across heterogeneous regions. In particular, we claim that since the local endowments of social capital display their effect on the economy mainly...