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Cohesion and/or Growth?

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  • Andrea Elekes

    ()
    (Pannon University)

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    Abstract

    Convergence and territorially balanced economic growth require faster economic growth in weaker regions. It is difficult to decide what measures would strengthen the growth capacity of regions most. Following a brief review of growth theories and the growth and catch-up performance of the Hungarian economy, the study focuses on the differences in development across regions in Hungary. Both the analysis of available statistical data and the calculations in connection with the catch-up rate show that the Hungarian regional development is strongly differentiated, and the so-called centre–periphery relationship can clearly be identified. Growth factors (e.g. human capital and R&D investment, innovation) should be enhanced simultaneously. Cohesion policy can complement and support growth objectives in many areas. Moreover, through the coordination of the innovation and cohesion policies even the trade-off problem between efficiency and convergence may be reduced.

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    File URL: http://www.asz.hu/public-finance-quarterly-articles/2011/cohesion-and-or-growth/a-108-124-elekesa.pdf
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    Bibliographic Info

    Article provided by State Audit Office of Hungary in its journal Public Finance Quarterly.

    Volume (Year): 56 (2011)
    Issue (Month): 1 ()
    Pages: 108-124

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    Handle: RePEc:pfq:journl:v:56:y:2011:i:1:p:108-124

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    Related research

    Keywords: regional convergence; growth; cohesion; crisis;

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    1. repec:fth:iniesr:430 is not listed on IDEAS
    2. Martin, Philippe & Ottaviano, Gianmarco Ireo Paolo, 1996. "Growing Locations: Industry Location in a Model of Endogenous Growth," CEPR Discussion Papers 1523, C.E.P.R. Discussion Papers.
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