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Real convergence and integration

Author

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  • Aurel IANCU

    (National Institute For Economic Research Street Av. Radu Beller, No. 19, sect. 1, Bucharest, Romania)

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. This paper deals with the evolution of the EU cohesion funds, as well as with the results of convergence.

Suggested Citation

  • Aurel IANCU, 2008. "Real convergence and integration," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 1, pages 15-28, December.
    • Handle: RePEc:aic:revebs:y:2008:v:1:p:15-28
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    References listed on IDEAS

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    Cited by:

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    2. 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.
    3. Păun Cristian, 2009. "An empirical estimation of Balassa-Samuelson Effect in case of Eastern European Countries," Revista OEconomica, Romanian Society for Economic Science, Revista OEconomica, issue 01, March.
    4. Lucian-Liviu ALBU, 2012. "Trends In Income Distribution," Romanian Journal of Economics, Institute of National Economy, vol. 35(2(44)), pages 33-44, December.
    5. Adela Socol & Imola Drigă, 2013. "Real Convergence in Romania - A Comparative Approach to Non-erm II Countries from Central and Eastern Europe," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 13(1), pages 261-272.
    6. 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 1-8, April.
    7. 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.
    8. 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 for Economic Research 111205, Institutul National de Cercetari Economice (INCE).
    9. Zizi GOSCHIN, 2017. "Exploring regional economic convergence in Romania. A spatial modeling approach," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8, pages 127-146, December.
    10. Lucian-Liviu Albu, 2012. "Structural Convergence in European Union," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 1-10, December.
    11. 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.
    12. Mariana Balan, 2018. "Estimating Economic And Social Regional Disparities In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 5-18, June.
    13. MIHUT Ioana Sorina & LUTAS Mihaela, 2013. "Teting Sigma Convergence Across New Eu Members," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 65(4), pages 121-131.
    14. 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.
    15. Mihai Antonia & Zizi Goschin & Irina-Denisa Munteanu & Mihail-Dumitru Sacală, 2023. "The Effects of Schooling Level on Economic Convergence in Emerging Countries: Evidence from Romania," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 169(1), pages 125-142, September.
    16. Mihaela-Nona Chilian & Marioara Iordan & Carmen Beatrice Pauna, 2016. "Real and structural convergence in the Romanian counties in the pre-accession and post-accession periods," ERSA conference papers ersa16p320, European Regional Science Association.
    17. 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.
    18. Raluca Necula & Mirela Stoian & Manea Draghici, 2016. "The Convergent Evolution of Romania’s Gross Domestic Product in Relation to the Average Macro-Economic Result of the European Union Countries," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(43), pages 575-575, August.

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    More about this item

    Keywords

    Neoclassical model; marginal rate of return on capital; polarisation; convergence; divergence; cohesion; cohesion funds; structural funds; variation coefficient.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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