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Accession Trajectories and Convergence: Endogenous Growth Perspective

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  • Michal Kejak
  • Stephan Seiter
  • David Vavra

Abstract

In this paper we analyze qualitatively and quantitatively the potential effect of the EU accession on the development of several Central and Eastern European (CEE)countries (specifically, the Czech Republic, Hungary, and Poland). To achieve the task we design a small open economy version of the two-sector endogenous growth model of the Uzawa-Lucas style with knowledge diffusion. The model is first calibrated and validated to stylized facts of the economic development during the accession process in the EU periphery countries. We then calibrate the model according to the data on the CEE countries above and simulate their behavior using alternative scenarios in several dimensions. The interplay of various initial conditions and the parameters of the accession generate different accession patterns and also rather different speeds of convergence to the EU average. The model outcomes do not only provide us with these quantitative estimates but also improve our understanding of the economic mechanisms, which underpin those transitions.

Suggested Citation

  • Michal Kejak & Stephan Seiter & David Vavra, 2004. "Accession Trajectories and Convergence: Endogenous Growth Perspective," CERGE-EI Working Papers wp219, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    • Handle: RePEc:cer:papers:wp219
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    Cited by:

    1. Vassilis Monastiriotis & Dimitris Kallioras & George Petrakos, 2014. "The regional impact of EU association agreements: lessons for the ENP from the CEE experience," Europe in Question Discussion Paper Series of the London School of Economics (LEQs) 0, London School of Economics / European Institute.
    2. Zuzana Křístková, 2012. "Impact of R&D Investment on Economic Growth of the Czech Republic - A Recursively Dynamic CGE Approach," Prague Economic Papers, Prague University of Economics and Business, vol. 2012(4), pages 412-433.
    3. repec:prg:jnlpep:v:2013:y:2013:i:4:id:432:p:412-433 is not listed on IDEAS
    4. Michal Kejak & David Vavra, 2004. "Factor Accumulation Story: Any Unfinished Business?," CERGE-EI Working Papers wp220, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    5. 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 - Leibniz Information Centre for Economics.
    6. Zuzana KRISTKOVA, 2013. "Analysis of Private R&D Effects in a CGE Model with Capital Varieties: The Case of the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 63(3), pages 262-287, July.
    7. M. Karagoz, 2016. "Comparative performances of EU-15 and Turkey: a PIN analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 23(1), pages 19-22, January.
    8. Rapacki, Ryszard, 2008. "Regional Integration and Development Asymmetries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 93-114.
    9. Forouzanfar, Mehdi & Doustmohammadi, Ali & Menhaj, M. Bagher & Hasanzadeh, Samira, 2010. "Modeling and estimation of the natural gas consumption for residential and commercial sectors in Iran," Applied Energy, Elsevier, vol. 87(1), pages 268-274, January.
    10. Valeria Costantini & Francesco Crespi, 2015. "European enlargement policy, technological capabilities and sectoral export dynamics," The Journal of Technology Transfer, Springer, vol. 40(1), pages 25-69, February.
    11. Zuzana Smeets Kristkova, 2011. "Impact of R&D investments on the economic growth of the Czech Republic – a recursively dynamic CGE approach," EcoMod2011 3137, EcoMod.

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    More about this item

    Keywords

    Two-Sector Growth Models; Economic Growth and Aggregate Productivity; Macroe-conomic Analysis of Economic Development; Human Resources; Human Capital Formation;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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