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Convergence of real GDP per capita in the EU15. How do the Accession Countries fit in?

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Author Info
Ville Kaitila (ETLA, the Research Institute of the Finnish Economy)

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Abstract

The EU15 countries’ real GDP per capita levels adjusted for purchasing power converged in 1960–2001. Convergence occurred in two spells, in 1960–73 and 1986–2001, with an interim period of stagnation. In this paper, we analyse both s and b convergence and discuss the impact of EU membership, trade and investment. We also analyse how seven accession countries fit into the historical picture of the EU15 area. The CEE countries are wellpositioned to catch up with the incumbent EU countries. After the mid-1990s, an increase in productivity and high investment rates have supported economic growth in the accession countries. Still, the experience of the EU15 countries shows that convergence cannot be taken for granted.

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Paper provided by European Network of Economic Policy Research Institutes in its series Economics Working Papers with number 025.

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Length: 34 pages
Date of creation: Jan 2004
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Handle: RePEc:epr:enepwp:025

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Related research
Keywords: convergence; EU; accession countries; enlargement;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  3. Ben-David, Dan, 1996. "Trade and convergence among countries," Journal of International Economics, Elsevier, vol. 40(3-4), pages 279-298, May. [Downloadable!] (restricted)
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  4. Baldwin, Richard & Seghezza, Elena, 1996. "Growth and European Integration: Towards an Empirical Assessment," CEPR Discussion Papers 1393, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, vol. 86(5), pages 1216-38, December. [Downloadable!] (restricted)
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  9. Ville Kaitila, 2002. "Accession Countries’ Comparative Advantage in the Internal," International Trade 0209001, EconWPA. [Downloadable!]
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  13. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, vol. 76(5), pages 1072-85, December. [Downloadable!] (restricted)
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  16. Ben-David, Dan, 1996. "Technological Convergence and International Trade," CEPR Discussion Papers 1359, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  17. Miller, Stephen M. & Upadhyay, Mukti P., 2002. "Total factor productivity and the convergence hypothesis," Journal of Macroeconomics, Elsevier, vol. 24(2), pages 267-286, June. [Downloadable!] (restricted)
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Cited by:
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  1. Susanne Lechner & Renate Ohr, 2008. "The Right of Withdrawal in the Treaty of Lisbon: A game theoretic reflection on different decision processes in the EU," cege – Center for European, Governance and Economic Development Research Discussion Papers 77, cege – Center for European, Governance and Economic Development Research, University of Goettingen (Germany)., revised 20 Oct 2008. [Downloadable!]
  2. Anil Markandya & Suzette Pedroso & Dalia Streimikiene, 2004. "Energy Efficiency in Transition Economies: Is There Convergence Towards the EU Average?," Working Papers 2004.89, Fondazione Eni Enrico Mattei. [Downloadable!]
  3. Ville Kaitila, 2005. "Integration and Conditional Convergence in the Enlarged EU Area," Economics Working Papers 031, European Network of Economic Policy Research Institutes. [Downloadable!]
    Other versions:
  4. Pastor Monsálvez, José M. & Serrano, Lorenzo, 2009. "European integration and inequality among countries: a lifecycle income analysis," MPRA Paper 18510, University Library of Munich, Germany. [Downloadable!]
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