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The Convergence Evolution in Europe from a Complex Networks Perspective

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  • Theophilos Papadimitriou

    (Department of Economics, Democritus University of Thrace, 69100 Komotini, Greece)

  • Periklis Gogas

    (Department of Economics, Democritus University of Thrace, 69100 Komotini, Greece)

  • Fotios Gkatzoglou

    (Department of Economics, Democritus University of Thrace, 69100 Komotini, Greece)

Abstract

The evolution of the convergence among the European countries, including both Eurozone as well as non-Eurozone economies, is investigated in this paper. To do so, we construct correlation-based networks and study them by employing the Threshold Weighted-Minimum Dominating Set (TW–MDS) algorithm and analyzing standard quantitative performance graph theory metrics. Each country is represented by a network node, while the edges represent the cross-correlations calculated for a specific macroeconomic variable, for a given time window. To study the intertemporal evolution of the network’s interconnections, we examine its structure in three consecutive time intervals: 1999–2004, 2005–2010 and 2011–2019. The empirical findings provide a mixed pattern. The European countries exhibit a common behavior over time for some macroeconomic variables, but not for all of them.

Suggested Citation

  • Theophilos Papadimitriou & Periklis Gogas & Fotios Gkatzoglou, 2022. "The Convergence Evolution in Europe from a Complex Networks Perspective," JRFM, MDPI, vol. 15(10), pages 1-14, October.
    • Handle: RePEc:gam:jjrfmx:v:15:y:2022:i:10:p:457-:d:940116
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