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The GDP per Capita Convergence in the European Union

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  • Mihaela Simionescu

Abstract

This paper tests the hypothesis of convergence in per capita GDP for the period 2008-2016 using the case study of European Union (EU) Member States. We also included Croatia into the analysis, even though it became an EU member only in 2013. The general framework for testing the convergence hypothesis is based on the panel data approach. Our results show that there was a convergence in per capita GDP (expressed in thousands Euro PPS in the EU-28) during the period 2003-2016, at a significance level of 5%. The outcomes of the Im-Pesaran-Shin test demonstrate that not all the EU-28 countries yielded the same speed of convergence towards the corresponding steady state. The quantitative approach of the convergence in GDP per capita in the European countries based on the fixed effects model is complemented by the presentation of maps, cartograms, and histograms.

Suggested Citation

  • Mihaela Simionescu, 2017. "The GDP per Capita Convergence in the European Union," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(1), pages 81-87, March.
    • Handle: RePEc:khe:scajes:v:3:y:2017:i:1:p:81-87
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    References listed on IDEAS

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    Cited by:

    1. Dimitar Zlatinov & Ilia Atanasov, 2021. "Absolute and Conditional Convergence: A Story about Convergence Clubs and Divergence in the EU," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 39-55.

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    More about this item

    Keywords

    Convergence; steady state; GDP; panel data; Im-Pesaran-Shin test; European Union;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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