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An empirical analysis of income convergence in the European Union

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  • Laurent Cavenaile
  • David Dubois

Abstract

In this article, we investigate the convergence process within the European Union. More particularly, we study the convergence process of the new entrants from Central and Eastern Europe and of the 15 Western countries between 1990 and 2007. Applying a panel approach to the convergence equation derived from the Solow model, we show that new entrants and former members of the European Union can be seen as belonging to different groups of convergence. The existence of heterogeneity in the European Union or the Eurozone might affect their stability as the recent Greece's sovereign debt crisis illustrates it.

Suggested Citation

  • Laurent Cavenaile & David Dubois, 2011. "An empirical analysis of income convergence in the European Union," Applied Economics Letters, Taylor & Francis Journals, vol. 18(17), pages 1705-1708.
  • Handle: RePEc:taf:apeclt:v:18:y:2011:i:17:p:1705-1708 DOI: 10.1080/13504851.2011.560104
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    References listed on IDEAS

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    1. Evzen Kocenda & Ali M. Kutan & M. Taner Yigit, 2005. "Pilgrims to Eurozone: How Far, How Fast," Working Papers 0501, Department of Economics, Bilkent University.
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    7. Ingianni, Andrea & Žd’árek, Václav, 2009. "Real Convergence in the New Member States: Myth or Reality?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 24, pages 294-320.
    8. Michele Battisti & Gianfranco Vaio, 2008. "A spatially filtered mixture of β-convergence regressions for EU regions, 1980–2002," Empirical Economics, Springer, pages 203-203.
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    Citations

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    Cited by:

    1. Mihály Borsi & Norbert Metiu, 2015. "The evolution of economic convergence in the European Union," Empirical Economics, Springer, pages 657-681.
    2. 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.
    3. Milena Nikolova & Boris Nikolaev, 2017. "Does Joining the EU Make You Happy? Evidence from Bulgaria and Romania," Journal of Happiness Studies, Springer, vol. 18(6), pages 1593-1623, December.
    4. Gül Ertan Özgüzer & Ayla Ogus Binatli, 2015. "Economic Convergence in the EU: A Complexity Approach," Working Papers 1503, Izmir University of Economics.
    5. Kaitila, Ville, 2013. "Convergence, income distribution, and the economic crisis in Europe," ETLA Working Papers 14, The Research Institute of the Finnish Economy.
    6. Marcin Grela & Aleksandra Majchrowska & Tomasz Michałek & Jakub Mućk & Agnieszka Stążka-Gawrysiak & Grzegorz Tchorek & Marcin Wagner, 2017. "Is Central and Eastern Europe converging towards the EU-15?," NBP Working Papers 264, Narodowy Bank Polski, Economic Research Department.
    7. Olcay COLAK, 2015. "Convergence Revisited: Case Of Eu And Eastern Europe," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 69-81, June.
    8. 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.
    9. repec:eee:eneeco:v:65:y:2017:i:c:p:32-41 is not listed on IDEAS
    10. Mihaela Simionescu, 2015. "About regional convergence clubs in the European Union," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics, vol. 33(1), pages 67-80.
    11. Michele Caputo & Francesco Forte, 2015. "Difficult Convergence among the Five Main European Union Countries and the Crisis of the Euro Area," Atlantic Economic Journal, Springer;International Atlantic Economic Society, pages 415-430.
    12. 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.
    13. 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.
    14. Martin Gächter & Aleksandra Riedl & Doris Ritzberger-Grünwald, 2013. "Business cycle convergence or decoupling? Economic adjustment of CESEE countries during the crisis," Chapters,in: A New Model for Balanced Growth and Convergence, chapter 10, pages 147-169 Edward Elgar Publishing.

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