Processes of real and nominal convergence in enlarged EU

This bachelor thesis deals with real and nominal convergence in the European Union. Particular attention is devoted to differences in convergence processes between New and Old Member States of the European Union. Beta and sigma convergence is tested at the levels of states, regions NUTS 1 and NUTS 2 during period 1995-2006. The results are put in theoretical background of Solow-Swan model and New Economic Geography. Furthermore, Balass-Samuelson effect and his incidence is presented