Models With Varying Parameters as A Tool to Classify Polish Voivodships in 2002-2008

One of the often used measures of economic development is gross domestic product <i>per capita</i>. In Poland the Main Statistical Office collects the data on this variable on several levels of aggregation. The paper shows the application of panel data models in order to classify Polish voivodships according to the level of economic development. As explained variable the regional GDP <i>per capita</i> was used and such variables as structure of employees, unemployment rate or retail sales per capita were the explaining variables. As a result the groups of voivodships with similar pattern of economic development were distinguished.