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Convergence and Inequality of income: the case of Western Balkan countries


  • Jalal El Ouardighi
  • Rabija Somun-Kapetanovic


This paper analyses the convergence process of inequality in income among five Balkan countries in the 1989-2008 period. This study is carried out in comparison with the situation in the European Union of 27 countries. The originality of our approach is to consider the convergence of countries' contributions to the international income inequality. The model allows simultaneously to test the convergence process of income and inequality. The results indicate a real convergence process between Balkan countries, while persistence is detected between European Union countries. However, the thorough investigations stress that there are differences in the pace of convergence across sub-periods. Thus, income and inequality convergence are higher during the 2000s for the EU-27, while the majority of convergence took place during the second half of the 1990s for Balkan countries. Accordingly, the development gap between Balkans and European Union remains important.

Suggested Citation

  • Jalal El Ouardighi & Rabija Somun-Kapetanovic, 2009. "Convergence and Inequality of income: the case of Western Balkan countries," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(2), pages 207-225, December.
  • Handle: RePEc:liu:liucej:v:6:y:2009:i:2:p:207-225

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    References listed on IDEAS

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    Cited by:

    1. Valerija Botric, 2013. "Output Convergence between Western Balkans and EU-15," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 5(1).
    2. Monica Răileanu Szeles, 2012. "What Lies beyond the Romania’s Economic Development," BRAND. Broad Research in Accounting, Negotiation, and Distribution, EduSoft Publishing, vol. 3(3), pages 54-63, December.
    3. E.Tsanana & C. Katrakilidis, 2016. "The issue of convergence: New empirical evidence for the Central Eastern Europe area," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 16(1), pages 53-62.
    4. Zsoka Koczan, 2016. "Being Poor, Feeling Poorer; Inequality, Poverty and Poverty Perceptions in the Western Balkans," IMF Working Papers 16/31, International Monetary Fund.
    5. Eftychia Tsanana & Constantinos Katrakilidis, 2014. "Do Balkan economies catch up with EU? New evidence from panel unit root analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 41(4), pages 641-662, November.

    More about this item


    Convergence; Inequality; Panel Data; Balkan countries; European Union;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe


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