Convergence and Catch-Up of the Region Types in the Central and Eastern European Countries

Abstract

AbstractOur study investigates the economic growth and catch-up of the NUTS3 regions of 6 Central and Eastern European (CEE) member states of the European Union (EU), 4 countries acceding in 2004 (Czechia, Poland, Hungary, and Slovakia) and further two admitted in 2007 (Bulgaria and Romania), compared to the average of 14 older members of the EU between 2000 and 2019. We based our analysis on the urban–rural region types of the EU in the case of 185 regions, identifying predominantly urban, intermediate, and predominantly rural types. We apply Theil Index to examine the development of disparities and test the phenomena with unconditional β-convergence hypothesis. The analysis indicates that the growth of all CEE countries and their regions is faster than the EU14 average; the capitals considerably exceed it, the catch-up of other urban regions is also relatively fast, while it is very slow in the case of other regions. The convergence between the 185 regions is weak, based on the EU region typology it was initially strong between the capitals, moderate in the case of intermediate and rural types, while divergence can be observed in the urban types. The catch-up of less developed regions is very slow despite EU cohesion funding, even though 80% of the population live here. The stagnation of regional disparities and slow catch-up of less developed regions indicate the poor efficiency of the EU cohesion policy.