As the differences between the regions are more pronounced than among the countries, NUTS 2 regions of the new members that joined the EU after 2000 are considered. Due to the presence of externalities between the regions, the Solow growth model using interregional externalities is used. This is...

The paper addresses the question what effects the enlargement of a monetary union will have on necessary structural refoms in the (low distortion) member countries and the (high distortion) candidate country. While monetary union lowers reforms in the candidate country, members of the monetary...