Regional disparities in Central and Eastern Europe rose substantially since 1990. Still, prima facie evidence of beta-convergence … convergence. In both CEE and the ‘old’ EU15, regional convergence is strongly linked to the level of national development, non …-linearly. But while in the EU15 convergence speeds-up at intermediate/high levels of development, in CEE we find divergence at …

convergence speed of per capita income among municipios and test whether spatial externalities are linked to local income growth …. Conditionally on structural characteristics, we find evidence of convergence between municipios and of positive spatial dependence …