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The Structural Convergence of New Members of the European Union: An Input-Output Perspective

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  • Petre Caraiani

    (Faculty of Business Administration in Foreign Languages, Bucharest University of Economic Studies, 010374 Bucharest, Romania
    Institute for Economic Forecasting, Romanian Academy, 050711 Bucharest, Romania)

Abstract

This paper aims to approach the topic of structural convergence for new member states from the perspective of input-output analysis. Using a set of input-output measures, based on the OECD RStan database, and a number of unit-root tests, both for individual time series and panel data, this paper tests whether there is convergence relative to the production structure of the German economy. Although the individual tests are somewhat mixed, the panel unit-root tests indicate the presence of convergence. The results highlight the importance of assessing structural convergence based on panel tests. They also highlight that as nominal and real convergence are gradually achieved, structural convergence should also become more prioritized.

Suggested Citation

  • Petre Caraiani, 2023. "The Structural Convergence of New Members of the European Union: An Input-Output Perspective," Economies, MDPI, vol. 11(10), pages 1-14, September.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:10:p:243-:d:1251662
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    References listed on IDEAS

    as
    1. Paul Johnson & Chris Papageorgiou, 2020. "What Remains of Cross-Country Convergence?," Journal of Economic Literature, American Economic Association, vol. 58(1), pages 129-175, March.
    2. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    3. Daniela Bobeva, 2021. "Nominal, Structural and Real Convergence of the EU Candidate Countries’ Economies," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 10(3), pages 59-78.
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