With eight former socialist economies joining the European Union, the European Economic Area underwent substantial change. Integration co-operation, mostly through the usage of structural funds requests partners on lower level of development to catch-up (converge) to the average level of development of the Community. Williamson (1965) had shown first that indeed, there is a convergence measured on national level, the price for which, however, is a growing differentiation among the regions. Suggested way of achieving cohesion is the catching-up of less developed regions and nations. When productivity or difference in GDP per capita is taken as the most important indicator for cohesion then catching-up could be achieved by a higher than average European Union GDP per capita growth in the catching-up economies. Hence, economic growth is the key to cohesion. Trade-off theories suggest that the most important trend in international economic co-operation is the hypothetical b (beta) convergence. Convergence depends on economic policy, created competitive advantages. These factors request thorough analysis of various aspects of competitiveness: setting proper ratio between overall and regional development, achieving high-level efficiency in state administration, supporting research and development, enhancing education on all levels, and last but not least, putting in place a well-functioning economic regulation and industrial policy. Concrete challenges for the Hungarian institutional system, regulation and international cooperation are also dealt with related to the above.
A. Stajano: Research, Quality, Competitiveness. European Union Technology Policy for the Information Society (New York: Springer Verlag, 2006, 456 pp.) Reviewed by András Blahó; K. Kouba - O. Vychodil - J. Roberts: Privatizace bez kapitálu (Zvýšené transakcní náklady ceské privatizace) Privatisation without Capital (Increased Transaction Costs of the Czech Privatisation) (Prague: Karolinum, 2005, 178 pp.) Reviewed by Katarína Jánošíková; M. N. Cardwell - M. R. Grossman - C. P. Rodgers (eds): Agriculture and International Trade. Law, Policy and the WTO (Wallingford, Oxon, UK: CABI Publishing, 2003, 330 pp.) Reviewed by Andrea Elekes
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