Transition, EU Accession and Structural Convergence

The article analyzes that how much and to what directionthe inherited structure of the Central and East Europeancandidate countries was transformed in recent years, andwhat this shift meant for their real convergence in theenlarged EU. A rearrangement of historical importanceoccurred across the main sectors contributing to GDP, inthe framework of which services have been emancipated.Transition in manufacturing was characterized by a largevariation among countries in terms of speed of restructuring.Good output performance, however, is found not necessarilyassociated with large structural shifts. The dominance oflabor intensive products in manufacturing indicates thatproductivity catching up will necessitate further massiveshifts in this sector in some candidate countries. The moveaway from central planning meant also a drastic fall indomestic savings which, from the point of view catching up,shifted the emphasis to the ability to attract foreign savingsand the efficient use of savings in general.