On the Future EU Cohesion Policies in Association States: the
Not only are levels of economic development in the association states in Central East Europe lower than the average EU-15. They furthermore exhibit significantly different sectoral structures. Does this suggest that a large fraction of the develop- ment gap can be explained by those sectoral differences? In its latest report on cohesion policy, the EU Commission accordingly placed particular emphasis on sectoral structures when contemplating future intervention policy in newly acceeding members. Our analysis shows, however, that the patterns of sectoral structures play only a minor role as determinants of the lower level of development, measured here as productivity gap. The explanatory power of sectoral differennces is significant only in Slovakia. The suggestions made in the EU-report is not supported by our analysis. The existing programmes appear to be well equipped to account for the particuliarities in transition economies.