<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The enlargement of the European Union (EU) led to an increase in regional development differences, challenging the EU structural policy. Whilst there are numerous papers discussing international and cross-EU development convergence, the issue seems under-researched at national level, especially when small territorial units are considered. This paper aims to partially fill this gap by using low aggregation (Local Administrative Unit 1, LAU1) territorial data between 2002 and 2013 a period that comprises Hungary’s EU accession and also the years of the recent Global Financial Crisis. We employ a novel approach to circumvent the lack of income, productivity or competitiveness data at LAU1 level by deriving two Regional Development Indices (RDI) resting on the estimation of internal migration functions. Once the RDIs are estimated, we proceed to a test sigma, beta and unit root convergence. Our results point towards regional divergence with rather bleak consequences for Hungarian and indeed European cohesion aims.</p>
</abstract>

The enlargement of the European Union (EU) led to an increase in regional development differences, challenging the EU structural policy. Whilst there are numerous papers discussing international and cross-EU development convergence, the issue seems under-researched at national level, especially when small territorial units are considered. This paper aims to partially fill this gap by using low aggregation (Local Administrative Unit 1, LAU1) territorial data between 2002 and 2013 a period that comprises Hungary’s EU accession and also the years of the recent Global Financial Crisis. We employ a novel approach to circumvent the lack of income, productivity or competitiveness data at LAU1 level by deriving two Regional Development Indices (RDI) resting on the estimation of internal migration functions. Once the RDIs are estimated, we proceed to a test sigma, beta and unit root convergence. Our results point towards regional divergence with rather bleak consequences for Hungarian and indeed European cohesion aims.

Convergence or Divergence? Analysis of Regional Development Convergence in Hungary

Institute of Economics – Centre for Economic and Regional Studies, Hungarian Academy of Sciences

Eastern European Countryside

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The enlargement of the European Union (EU) led to an increase in regional development differences, challenging the EU structural policy. Whilst there are...

Convergence or Divergence? Analysis of Regional Development Convergence in Hungary

Published Online: Dec 31, 2019

Page range: 121 - 143

DOI: https://doi.org/10.12775/eec.2019.005

Keywords
Regional Development Indicator, Hungary, Sigma, Beta Convergence

© 2019 Zoltán Bakucs et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Convergence or Divergence? Analysis of Regional Development Convergence in Hungary

Published Online: Dec 31, 2019

Page range: 121 - 143

DOI: https://doi.org/10.12775/eec.2019.005

KeywordsRegional Development Indicator, Hungary, Sigma, Beta Convergence

© 2019 Zoltán Bakucs et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Regional Development Indicator, Hungary, Sigma, Beta Convergence