Business Administration and Business Economics

Abstract

The paper is focused on the analysis of the correlation between economic development and
poverty across the EU. The “surprise” is that many Member States face to high poverty and social
exclusion rates in 2017 and the forecast are not too optimistic. The analysis in the paper follows more
steps: a comparative analysis focused on child poverty rate, a regression analysis able to point out the
disparities between Member States and a cluster analysis, as well. In order to obtain a better approach
and better conclusions, forecasting procedures are used on short time. Finally, a cross-correlation
analysis is used in order to express the compatibility between the poverty’s evolution in each Member
States vs EU average. The main conclusion of the paper is that of the impossibility to solve the poverty’s
challenge on short and medium terms in EU. Moreover, Member States can define three clusters under
this indicator. This is the main reason to continue the present research to a new analysis of the poverty’s
challenge in the context of the new EU’s approach.