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The Convergence Process in the EU Estimated by Gini Coefficients

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Author Info

  • Albu, Lucian Liviu

    ()
    (Institute for Economic Forecasting)

Abstract

At present, there is not an unique indicator to evaluate the converge process. Varying with the assumptions and methodologies considered, with the indicators used and with the periods analysed, the results of the studies on convergence in the European Union are often ambiguous. Some of them support the existence of convergence, others conclude that a convergence process is not yet demonstrated and some authors point out that there is a divergence process. Using the Lorenz curve model and estimating on its basis Gini coefficients for the last decade we demonstrated in this study a significant convergence process in the EU, despite the negative impact of the actual crisis. However, the differences in matter of convergence emerge at the level groups of countries. Thus, while in EU-10 (recently joined countries to the EU) a strong convergence is visible, in EU-15 (old members of EU) a significant trend of divergence was demonstrated.

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Bibliographic Info

Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): (2012)
Issue (Month): 4 (December)
Pages: 5-16

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Handle: RePEc:rjr:romjef:v::y:2012:i:4:p:5-16

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Related research

Keywords: convergence; Gini coefficient; Lorenz curve; divergence; the European Union;

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References

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  1. Iancu Aurel, 2006. "Problema convergenţei economice," Revista OEconomica, Romanian Society for Economic Science, Revista OEconomica, issue 04, December.
  2. Gastwirth, Joseph L, 1972. "The Estimation of the Lorenz Curve and Gini Index," The Review of Economics and Statistics, MIT Press, vol. 54(3), pages 306-16, August.
  3. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
  4. Iancu, Aurel, 2009. "Real Convergence and Integration," Working Papers of National Institute of Economic Research 090102, National Institute of Economic Research.
  5. Iancu, Aurel, 2010. "Transition, Integration And Convergence - The Case Of Romania -," Working Papers of National Institute of Economic Research 101222, National Institute of Economic Research.
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Cited by:
  1. Lucian-Liviu ALBU, 2012. "Trends In Income Distribution," Romanian Journal of Economics, Institute of National Economy, vol. 35(2(44)), pages 33-44, December.
  2. Lucian-Liviu Albu, 2012. "Structural Convergence in European Union," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 1-10, December.

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