Structural change, economic growth and adequate exchange rate adjustment are key challenges in the context of EU eastern enlargement as are consistent macroeconomic policies. The authors focus on sectoral adjustment across industries in catching-up countries and explain changes in the composition of output - this includes new aspects of the Chenery model. They describe and analyze the spatial pattern of specialization and adjustment in many countries. Theoretical and empirical analysis of foreign direct investment, innovation and structural change shed new light on economic dynamics in Old Europe and New Europe. As regards exchange rate dynamics both traditional aspects (such as the Balassa-Samuelson effect) and new approaches to understanding exchange rate developments are presented. Links between exchange rate changes and innovation are particularly emphasized.

Changes in Competitive Advantages of Transition Economies: Measurement and Factors.- Comment on: Changes in Competitive Advantages of Transition Economies: Measurement and Factors.- EU Export Specialization Patterns in Selected Accession Countries.- Comment on: EU Export Specialization Patterns in Selected Accession Countries.- Sectoral Change and Economic Integration: Theoretical and Empirical Aspects of the Eastern Enlargement of the European Union.- Comment on: Sectoral Change and Economic Integration: Theoretical and Empirical Aspects of the Eastern Enlargement of the European Union.- Structural Change and Economic Dynamics in Transition Economies.- Comment on: Structural Change and Economic Dynamics in Transition Economies.- Patterns of Industrial Specialization and Concentration in CEECs: Theoretical Explanations and their Empirical Relevance.- Comment on: Patterns of Industrial Specialization and Concentration in CEECs: Theoretical Explanations and their Empirical Relevance.- The Absence of Technology Spillovers from Foreign Direct Investment in Transition Economies.- Comment on: The Absence of Technology Spillovers from Foreign Direct Investment in Transition Economies.- Innovations, Technological Specialization and Economic Convergence in the EU.- Comment on: Innovations, Technological Specialization and Economic Convergence in the EU.- Equilibrium Exchange Rates in the Transition: The Tradable Price-Based Real Appreciation and Estimation Uncertainty.- Comment on: Equilibrium Exchange Rates in the Transition: The Tradable Price-Based Real Appreciation and Estimation Uncertainty.- Innovation, Structural Change and Exchange Rate Dynamics in Catching-up Countries.- Comment on: Innovation, Structural Change and Exchange Rate Dynamics in Catching-up Countries.