Cohesion and/or Growth? – Regional Dimensions of Convergence and Growth in Hungary

Convergence and territorially balanced economic growth require faster economic growth in weaker regions. It is dif-ficult to decide what measures would strengthen the growth capacity of regions most. Following a brief review of growth the-ories and the growth and catch-up performance of the Hungarian economy, the study focuses on the differences in develop-ment across regions in Hungary. Both the analysis of available statistical data and the calculations in connection with the catch-up rate show that the Hungarian regional development is strongly differentiated, and the so-called centre–periphery relationship can clearly be identified. Growth factors (e.g. human capital and R&D investment, innovation) should be enhanced simultaneously. Cohesion policy can complement and support growth objectives in many areas. Moreover, through the coordination of the innovation and cohesion policies even the trade-off problem between efficiency and convergence may be reduced.