“…Shortly after the start of the transition, regional disparities in income and employment had already became increasingly evident ( Petrakos, 1996 , Petrakos, 2001 ) due to the inability of some regions to adapt to the shock of transition to a market economy ( Fazekas, 1996 ) in large part because of their structural characteristics ( Ezcurra & Pascual, 2007 ; Monastiriotis, Kallioras, & Petrakos, 2017 ). Moreover, throughout the past twenty years, higher productivity, per capita GDP and population growth have characterized CEE's capital cities and the regions surrounding them ( Babecký & Komárek, 2020 ; Neumann, Budde, & Ehlert, 2014 ). Thus, even as the CEE countries have been catching up with the old EU members in terms of per capita GDP, within the CEE countries, incomes and productivity have been diverging between the rich and poor regions.…”