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Real Convergence and Integration

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  • Iancu, Aurel

    (Romanian Academy, National Institute of Economic Research)

Abstract

The study is based on the critical observations that competitive market forces alone are not able to assure convergence with the developed countries. These observations are grounded on the results of the computation of the marginal rate of return to capital (which contradict the neoclassical model hypotheses), as well as on the real process of polarisation of the economic activities, taking place worldwide and in accordance with the law of competition. Unlike those who trust the perfect competitive market virtues, the EU’s economic policy is realistic as it is based on the harmonisation of the market forces with an economic policy based on the principle of cohesion, which supports, by means of economic levers, the less developed regions and member countries. Our paper deals with the evolution of the EU cohesion funds, as well as with the results of convergence. * Study within the CEEX Programme – Project No. 220/2006 “Economic Convergence and Role of Knowledge in Relation to the EU Integration”.

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Bibliographic Info

Paper provided by National Institute of Economic Research in its series Working Papers of National Institute of Economic Research with number 090102.

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Length: 20 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:ror:wpince:090102

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Keywords: neoclassical model; marginal rate of return to capital; polarisation; convergence; divergence; cohesion; cohesion among countries; cohesion funds; structural funds; variation coefficient.;

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  1. Alejandro Ramirez & Gustav Ranis & Frances Stewart, . "Economic Growth and Human Development -," QEH Working Papers qehwps18, Queen Elizabeth House, University of Oxford.
  2. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
  3. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence," Papers 645, Yale - Economic Growth Center.
  4. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October.
  5. Paul M Romer, 1999. "Increasing Returns and Long-Run Growth," Levine's Working Paper Archive 2232, David K. Levine.
  6. Aghion, Philippe & Caroli, Eve & García-Peñalosa, Cecilia, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Scholarly Articles 12502063, Harvard University Department of Economics.
  7. Aurel Iancu, 2006. "Problema convergentei economice," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 4(4(499)(su), pages 43-64, June.
  8. Esteban, J.M. & Ray, D., 1992. "On the Measurement of Polarization," UFAE and IAE Working Papers 171.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  9. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  10. M. Taner Yigit & Ali M. Kutan, 2004. "Convergence of Candidate Countries to the European Union," Departmental Working Papers 0403, Bilkent University, Department of Economics.
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Cited by:
  1. Lucian-Liviu Albu, 2012. "Structural Convergence in European Union," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 1-10, December.
  2. Miron, Dumitru & Dima, Alina & Paun, Cristian, 2009. "A model for assessing Romania's real convergence based on distances and clusters methods," MPRA Paper 31410, University Library of Munich, Germany.
  3. Paun, Cristian, 2010. "An empirical estimation of Balassa – Samuelson Effect in case of Eastern European Countries," MPRA Paper 31407, University Library of Munich, Germany.
  4. Daniela ANTONESCU, 2012. "Identifying Regional Economic Disparities and Convergence in Romania," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 2(2), pages 8, April.
  5. Lucian-Liviu ALBU, 2012. "Trends In Income Distribution," Romanian Journal of Economics, Institute of National Economy, vol. 35(2(44)), pages 33-44, December.
  6. Diana Tănase & Adrian Tănase & Florin Franţ, 2013. "Impact of the Influential Factors of Economic Competitiveness upon Romania’s West Region Firms," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(3), pages 7, June.
  7. Triandafil, Cristina Maria, 2011. "The Analysis Of The Convergence Criteria. Empirical Perspective In The Context Of The Sustainable Character Highlight," Working Papers of National Institute of Economic Research 111205, National Institute of Economic Research.
  8. Guglielmo Maria Caporale & Christophe Rault & Robert Sova & Anamaria Sova, 2009. "Trade Specialisation and Economic Convergence: Evidence from Two Eastern European Countries," Discussion Papers of DIW Berlin 875, DIW Berlin, German Institute for Economic Research.
  9. Albu, Lucian Liviu, 2013. "Foreign Trade and FDI as Main Factors of Growth in the EU," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 7-17, June.
  10. Altar, Moisa & Necula, Ciprian & Bobeica, Gabriel, 2008. "Modeling The Economic Growth In Romania. The Influence Of Fiscal Regimes," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 5(4), pages 146-160, December.
  11. Albu, Lucian Liviu, 2012. "The Convergence Process in the EU Estimated by Gini Coefficients," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 5-16, December.

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