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An Analysis Of The Economic Convergence Process In The Transition Countries

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  • Urmas Varblane
  • Priit Vahter

Abstract

The paper is analysing the process of economic convergence of transition countries during the period 1995–2004. Within the analysed period unconditional ß-convergence across the transition economies existed. We could also discover the reduction of dispersion of income levels between accession countries (sigma-convergence). Comparative analyses of the new EU member states (NMS) economic convergence with the previous entrants into EU (Ireland, Greece, Spain, and Portugal) revealed that NMS have been much more successful in their convergence process before joining EU. Analyses of the macroeconomic, human capital, infrastructure indicators of the current accession countries compared with the previous cohesion countries indicated that the new members have been much better prepared to the enlargement. This allows drawing conclusion that the NMS face an opportunity to obtain much more rapid convergence process than expected by previous analyses, which have seriously undervalued the positive role of the pre-accession harmonisation process of NMS with the implementation of the major economic reforms in order to guarantee macroeconomic stability.

Suggested Citation

  • Urmas Varblane & Priit Vahter, 2005. "An Analysis Of The Economic Convergence Process In The Transition Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 37, Faculty of Economics and Business Administration, University of Tartu (Estonia).
  • Handle: RePEc:mtk:febawb:37
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    References listed on IDEAS

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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. repec:gam:jecomi:v:5:y:2017:i:3:p:27-:d:105700 is not listed on IDEAS
    3. Kosta Josifidis & Radmila Dragutinović Mitrović & Olgica Ivančev, 2012. "Heterogeneity of Growth in the West Balkans and Emerging Europe: A Dynamic Panel Data Model Approach," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 59(2), pages 157-183, May.
    4. Borut Vojinovic & Zan Oplotnik & Mariusz Prochniak, 2010. "EU enlargement and real economic convergence," Post-Communist Economies, Taylor & Francis Journals, vol. 22(3), pages 303-322.
    5. Magdalena Osinska & Karolina Kluth, 2010. "Convergence of Greek Economy with the EU and Some Comparisons with Polish Experience," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 139-156.
    6. repec:dug:journl:y:2017:i:2:p:44-54 is not listed on IDEAS
    7. Stavarek Daniel & Tomanova Lucie, 2014. "Is the region of Visegrad countries on the track to the euro area? Recent evidence from the real convergence perspective," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», issue 3, pages 130-139.
    8. Jan Nevima & Ingrid Majerová, 2015. "Application of ß – Convergence Approach in Visegrad Four Regions," Working Papers 0004, Silesian University, School of Business Administration.
    9. Alisher Akhmedjonov & Marco Chi Keung Lau & Berna Balcı İzgi, 2013. "New evidence of regional income divergence in post-reform Russia," Applied Economics, Taylor & Francis Journals, vol. 45(18), pages 2675-2682, June.
    10. Borut Vojinović & Žan Jan Oplotnik, 2008. "Real convergence in the new eu member states," Prague Economic Papers, University of Economics, Prague, vol. 2008(1), pages 23-39.
    11. J.M. Figuet & Nikolay Nenovsky, 2006. "Convergence and Shocks in the road to EU: Empirical investigations for Bulgaria and Romania," Post-Print halshs-00259703, HAL.
    12. Vojinović, Borut & Acharya, Sanjaya & Próchniak, Mariusz, 2009. "Convergence Analysis Among the Ten European Transition Economies," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 50(2), pages 17-35, December.
    13. 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.
    14. Srinivas, Goli, 2014. "Demographic convergence and its linkage with health inequalities in India," MPRA Paper 79823, University Library of Munich, Germany, revised 05 Dec 2014.
    15. Tatomir, Cristina F. & Alexe, Ileana, 2011. "Laggards or performers? CEE vs. PIIGS countries’ catch-up with the Euro area in the last ten years," MPRA Paper 35715, University Library of Munich, Germany.
    16. Ivan Zyuulu, 2010. "Convergence in the SADC and African economic integration process: prospects and statistical issues," IFC Bulletins chapters,in: Bank for International Settlements (ed.), Proceedings of the SARB/IFC seminar on "Economic and financial convergence en route to regional economic integration: experience, prospects and statis, volume 32, pages 96-105 Bank for International Settlements.
    17. repec:krk:eberjl:v:5:y:2017:i:4:p:189-204 is not listed on IDEAS

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