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Cohesion and/or Growth? – Regional Dimensions of Convergence and Growth in Hungary

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  • Elekes, Andrea

Abstract

Convergence and territorially balanced economic growth require faster economic growth in weaker regions. It is dif-ficult to decide what measures would strengthen the growth capacity of regions most. Following a brief review of growth the-ories and the growth and catch-up performance of the Hungarian economy, the study focuses on the differences in develop-ment 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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  • Elekes, Andrea, 2011. "Cohesion and/or Growth? – Regional Dimensions of Convergence and Growth in Hungary," Public Finance Quarterly, Corvinus University of Budapest, vol. 56(1), pages 108-124.
    • Handle: RePEc:pfq:journl:v:56:y:2011:i:1:p:108-124
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    References listed on IDEAS

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    More about this item

    Keywords

    regional convergence; growth; cohesion; crisis;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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