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Application of ß – Convergence Approach in Visegrad Four Regions

Author

Listed:
  • Jan Nevima

    () (Departament of Economics and Public Administration, School of Business Administration, Silesian University)

  • Ingrid Majerová

    () (Departament of Economics and Public Administration, School of Business Administration, Silesian University)

Abstract

The paper focuses on the analysis of real convergence process in the Visegrad Four countries. The aim of the paper is to verify concept of β-convergence at regional level in the case of new Member States of the European Union. The theoretical background of the paper defines the methodological concept of real convergence. It focuses mainly on the concept of β- convergence which is the case of unconditional convergence. This approach is based on the neoclassical growth model. The empirical part of the paper concentrates on the analysis of β- convergence in 35 NUTS 2 regions of the Visegrad Four countries in the period between 1995 and 2012 to a steady state. The steady state is represented by an average of real GDP per capita in EU 28. Used approach assumes that the steady state is changing during the observed period with a nonzero growth. The process of β-convergence is analyzed and evaluated by nonlinear regression econometric model, which is formulated in two variations based on the mathematical concept of deterministic convergence. Gross domestic product per capita in constant prices is used to estimate both models.

Suggested Citation

  • Jan Nevima & Ingrid Majerová, 2015. "Application of ß – Convergence Approach in Visegrad Four Regions," Working Papers 0004, Silesian University, School of Business Administration.
  • Handle: RePEc:opa:wpaper:0004
    as

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    File URL: http://www.iivopf.cz/images/Working_papers/WPIEBS_04_Nevima_Majerova.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Visegrad Four; NUTS 2 region; ß-convergence; nonlinear regression econometric model; non-linear panel data regression model;

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: 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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