This paper focu­ses on the growth and con­ver­gence of Cen­tral, Eas­tern and South-Eas­tern Euro­pean EU count­ries (CESEE). We argue that the fac­tors behind the pre-cri­sis growth model of the regi­on – skil­led yet afforda­ble labour force, for­eign direct invest­ment, imports of pro­duc­ti­vi­ty-enhan­cing tech­no­lo­gy – are pete­ring out, and are yet to be sub­sti­tu­ted. We pro­po­se a new growth model cent­red around a shift towards more home-grown inno­va­ti­on, digi­ta­li­sa­ti­on, cli­ma­te chan­ge miti­ga­ti­on and a strong focus on skills, labour and social inclu­si­on to lea­ve the midd­le inco­me trap behind for good and to boost eco­no­mies’ growth pro­s­pects in a post-COVID world. Based on ana­ly­sis of firm-level data, we high­light the pre­re­qui­si­tes of making this tran­si­ti­on happen.

Quel­le /​ Link: Towards a new growth model in CESEE: Con­ver­gence and com­pe­ti­ti­ve­ness through smart, green and inclu­si­ve investment