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Is the Region of Visegrad Countries on the Track to the Euro Area? Recent Evidence from the Real Convergence Perspective

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  • Daniel Stavárek

    (Silesian University in Opava)

  • Lucie Tomanova

    (Silesian University in Opava)

Abstract

After enlargement of the European Union and subsequently joining of a new member states to the euro area, the question of economic convergence attracted considerable research interest. This paper adopts three alternative concepts to examine the level and trend of convergence in the Visegrad countries (Czech Republic, Hungary, Poland, Slovakia). We concurrently estimate the β-convergence, σ-convergence and business cycle synchronization to find out whether all countries are on the way towards higher convergence with the euro area. The results suggest that convergence of all countries has been increasing. However, the recent acceleration of the convergence process is caused mainly by external shocks in the form of the financial crisis and following economic slowdowns. Hence, the current level of convergence in the Visegrad countries cannot be considered as fully adequate.

Suggested Citation

  • Daniel Stavárek & Lucie Tomanova, 2014. "Is the Region of Visegrad Countries on the Track to the Euro Area? Recent Evidence from the Real Convergence Perspective," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 130-139.
    • Handle: RePEc:ura:ecregj:v:1:y:2014:i:3:p:130-139
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