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Stochastic Convergence of the European Union Countries: A Conditional Approach

Author

Listed:
  • Mariusz Próchniak

    (Warsaw School of Economics)

  • Bartosz Witkowski

    (Warsaw School of Economics)

Abstract

The article is devoted to the analysis of the stochastic convergence of the EU countries to the EU15 GDP weighted average. Apart from the relatively common concept of stochastic absolute convergence, the conditional stochastic convergence is considered. In order to check for the latter, the Bayesian averaged model is used so as to attain the influence of the growth factors on the growth processes and in order to eliminate it from the series. The results indicate that only few countries converge stochastically, both in the absolute as well as in the conditional sense.

Suggested Citation

  • Mariusz Próchniak & Bartosz Witkowski, 2015. "Stochastic Convergence of the European Union Countries: A Conditional Approach," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 39, pages 41-56.
  • Handle: RePEc:sgh:annals:i:39:y:2015:p:41-56
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    References listed on IDEAS

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    6. Marcus Scheiblecker & et al., 2003. "Österreichs Wirtschaft im Jahr 2002: Neuerlich ungenügendes Wachstum," WIFO Monatsberichte (monthly reports), WIFO, vol. 76(4), pages 257-323, April.
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    2. Desli, E. & Gkoulgkoutsika, A., 2020. "World economic convergence: Does the estimation methodology matter?," Economic Modelling, Elsevier, vol. 91(C), pages 138-147.

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    More about this item

    Keywords

    stochastic convergence; Bayesian model averaging; absolute convergence; relative convergence;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal 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
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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