The convergence of countries and regions continues to attract significant academic and policy attention due to its socio-economic implications. In recent years, Romania has shown continuous, remarkable progress toward the EU average level of development, whereas the Hungarian economic catching up has slowed down. This study analyses these trends through a comparative lens by tracking the evolution of gross value added per capita and decomposing it into its key determinants using statistical techniques. Special attention is given to the sectoral structure of the two economies and how it has changed over time. The approach draws on the concept of territorial competitiveness as developed in regional science, and incorporates demographic, employment, and labour productivity indicators.
Keywords: economic catching-up, spatial competitiveness, labour productivity, spatial differentials, economic structure
