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Real convergence in the new Member States of the European Union (Shorter and longer term prospects)

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  • Péter Halmai
  • Viktória Vásáry

Abstract

The success of the integration process of the new EU Member States is reflected by their nominal and real convergence performance. These tendencies are of special importance considering further enlargement of the Eurozone. The financial and economic crisis of 2008 has resulted, however, in a fundamentally new situation as regards these issues. The paper considers the experiences gained in real convergence, the catch-up processes and their future prospects. As for nominal convergence, only those factors were analysed which affect real convergence directly. In particular, the analysis focuses on the sustainability of the convergence processes. The possible trends of longer term growth and convergence processes are presented based on a qualitative analysis representing the supply side approach. The analysis is aimed at revealing potential – not insignificant – risks and threats.

Suggested Citation

  • Péter Halmai & Viktória Vásáry, 2010. "Real convergence in the new Member States of the European Union (Shorter and longer term prospects)," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 7(1), pages 229-253, June.
  • Handle: RePEc:liu:liucej:v:7:y:2010:i:1:p:229-253
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    Cited by:

    1. Cristina Tatomir & Ileana Alexe, 2011. "Romania: Climbing The Ladder For A Better Future. When Will It Reach Eu And Euro Area?," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 192-196, December.
    2. Greta Marianna & Lewandowski Krzysztof, 2015. "The Impact Of The Global Financial And Economic Crisis Convergence Process In OECD Countries," Comparative Economic Research, De Gruyter Open, vol. 18(1), pages 81-96, March.
    3. Andrea Elekes, 2011. "Cohesion and/or Growth?," Public Finance Quarterly, State Audit Office of Hungary, vol. 56(1), pages 108-124.
    4. Farkas, Beáta, 2011. "A közép-kelet-európai piacgazdaságok fejlődési lehetőségei az Európai Unióban
      [The development opportunities for the Central-East European market economies within the European Union]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 412-429.
    5. Jubenot Marie-Noelle, 2013. "Applying The Kuznets Curve In Case Of Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 106-115, December.
    6. Petrevski, Goran & Gockov, Gjorgji & Makreshanska-Mladenovska, Suzana, 2016. "Determinants of real convergence in Central and Eastern Europe," MPRA Paper 74655, University Library of Munich, Germany, revised 18 Oct 2016.
    7. Mirjana Gligoric, 2014. "Paths Of Income Convergence Between Country Pairs Within Europe," Economic Annals, Faculty of Economics, University of Belgrade, vol. 59(201), pages 123-156, April – J.
    8. Ryszard Rapacki & Mariusz Próchniak, 2014. "The Impact of EU Membership on Economic Growth and Real Convergence of the Central and Eastern European Countries," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 39.
    9. Roxana Badircea & Alina Manta & Alia Duta, 2016. "The Analysis of the Real Convergence of the Countries from Central and Eastern Europe," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(18), pages 45-50, December.
    10. Monica Raileanu Szeles & Rodrigo Mendieta Muñoz, 2016. "Analyzing the Regional Economic Convergence in Ecuador. Insights from Parametric and Nonparametric Models," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 43-65, June.
    11. repec:rom:bemann:v:6:y:2016:i:1:p:36-42 is not listed on IDEAS
    12. Matkowski, Zbigniew & Prochniak, Mariusz & Rapacki, Ryszard, 2016. "Real Income Convergence between Central Eastern and Western Europe: Past, Present, and Prospects," EconStor Conference Papers 146992, ZBW - German National Library of Economics.
    13. Mats Johansson & Pia Nilsson & Hans Weslund, 2014. "Demographic and economic trends in a rural Europe in transition," ERSA conference papers ersa14p445, European Regional Science Association.

    More about this item

    Keywords

    European Union; real convergence; convergence crisis; potential growth; catch-up;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • F15 - International Economics - - Trade - - - Economic Integration
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • 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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