Convergence and structural change in the context of the «cohesion countries»

Abstract

This study looks at the different growth trajectories of the «cohesion countries» of the EU, outlining in each case the relative contribution of two types of process: structural change (seen as a change in the relative significance of various business sectors in the economies in question) and the increases in productivity in each sector (or group of sectors). The inherent problem here is to assess whether it is possible for genuine convergence to take place in a context where there is little or no structural change. This study points to the relative insignificance of an economy's structural make-up in explaining the underlying productivity gap. There is reason to believe that this assessment has to be qualified, bearing in mind a set of factors which are identified in the concluding chapter.