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Cyclical convergence of Central and Eastern European countries to the Euro area core. New methodological approach

Author

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  • Ileana ALEXE

    (The Bucharest University of Economic Studies)

  • Oana Cristina POPOVICI

    (The Bucharest University of Economic Studies)

Abstract

The current paper develops an analysis on the degree of business cycle convergence of the new member states of the EU towards the Euro area core (Germany, France, Italy, Belgium, Netherlands and Luxembourg) during 1996 – 2010. Unlike the previous research, the study takes into consideration the similarity of cycles, and not their synchronization. Furthermore, from the methodological point of view, it explores the use of survey indicators in the analysis of the cycles, thus in addition to the traditional approach that employs the GDP. The results obtained through clusterization show that the degree of convergence towards Euro area core remains modest.

Suggested Citation

  • Ileana ALEXE & Oana Cristina POPOVICI, 2013. "Cyclical convergence of Central and Eastern European countries to the Euro area core. New methodological approach," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(581)), pages 101-110, April.
    • Handle: RePEc:agr:journl:v:xx:y:2013:i:4(581):p:101-110
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