Drivers of convergence in eleven eastern European countries
This paper investigates the drivers of growth and prosperity in a group of eleven European countries -- Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovenia, and Slovakia (the EU11). Since the EU11 began the transformation process, this group of emerging countries has made impressive strides as developing market economies and is anchoring development in European Union institutions. There are reasons to believe that the convergence of EU11 income per capita to Western European levels will continue, but will proceed more slowly. The paper concludes that trade and financial integration have sped along at a spectacular pace in the EU11 in the recent past, although trade in modern services and the integration of government bond and equity markets are somewhat behind. As in the rest of Europe, demographic developments will pose huge challenges for the sustainability of public finance in the EU11 economies. In the next several decades, the EU11 labor force is expected to contract more than labor forces in the rest of the European Union, making it even more urgent that countries in the region reform pension systems, change migration policy, and find incentives to attract talent to the region. Closing the gap with the rest of the European Union in educational attainment levels and improving education quality might significantly soften the constraints imposed by the demographic threats and produce sizable returns in terms of additional income convergence.
|Date of creation:||01 Aug 2012|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anna Iara, 2006.
"Skill Diffusion by Temporary Migration? Returns to Western European Working Experience in the EU Accession Countries,"
wiiw Balkan Observatory Working Papers
69, The Vienna Institute for International Economic Studies, wiiw.
- Anna Iara, 2006. "Skill diffusion by temporary migration? Returns to Western European working experience in the EU-accession countries," IEHAS Discussion Papers 0607, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences, revised 30 Aug 2006.
- Anna Iara, 2006. "Skill Diffusion by Temporary Migration? Returns to Western European Working Experience in the EU Accession Countries," Development Working Papers 210, Centro Studi Luca d'Agliano, University of Milano.
- Ilke Van Beveren, 2007.
"Total factor productivity estimation: A practical review,"
LICOS Discussion Papers
18207, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Ilke Van Beveren, 2012. "Total Factor Productivity Estimation: A Practical Review," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 98-128, 02.
- Jesús Crespo Cuaresma & Martin Feldkircher, 2010.
"Spatial Filtering, Model Uncertainty and the Speed of Income Convergence in Europe,"
160, Oesterreichische Nationalbank (Austrian Central Bank).
- Jesús Crespo Cuaresma & Martin Feldkircher, 2013. "Spatial Filtering, Model Uncertainty And The Speed Of Income Convergence In Europe," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(4), pages 720-741, 06.
- Jesus Crespo Cuaresma & Martin Feldkircher, 2009. "Spatial Filtering, Model Uncertainty and the Speed of Income Convergence in Europe," Working Papers 2009-17, Faculty of Economics and Statistics, University of Innsbruck.
- Karin Mayr & Giovanni Peri, 2009.
"Brain Drain and Brain Return: Theory and Application to Eastern-Western Europe,"
NRN working papers
2009-19, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
- Mayr Karin & Peri Giovanni, 2009. "Brain Drain and Brain Return: Theory and Application to Eastern-Western Europe," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 9(1), pages 1-52, November.
- Karin Mayr & Giovanni Peri, 2009. "Brain drain and Brain Return: Theory and Application to Eastern-Western Europe," Vienna Economics Papers 0907, University of Vienna, Department of Economics.
- Karin Mayr & Giovanni Peri, 2009. "Brain Drain and Brain Return: Theory and Application to Eastern-Western Europe," CReAM Discussion Paper Series 0911, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
- Rita Almeida, 2004.
"The labor market effects of foreign-owned firms,"
Policy Research Working Paper Series
3300, The World Bank.
- Torfinn Harding, Torfinn; Javorcik, Beata S., 2010.
"Roll out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows,"
CAGE Online Working Paper Series
18, Competitive Advantage in the Global Economy (CAGE).
- Torfinn Harding & Beata S. Javorcik, 2011. "Roll Out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows," Economic Journal, Royal Economic Society, vol. 121(557), pages 1445-1476, December.
- Samir KC & Bilal Barakat & Anne Goujon & Vegard Skirbekk & Warren C. Sanderson & Wolfgang Lutz, 2010. "Projection of populations by level of educational attainment, age, and sex for 120 countries for 2005-2050," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 22(15), pages 383-472, March.
- World Bank, 2009. "Pensions in Crisis : Europe and Central Asia Regional Policy Note," World Bank Other Operational Studies 18728, The World Bank.
- M. Del Gatto & A. Di Liberto & C. Petraglia, 2008.
Working Paper CRENoS
200818, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Dirk Pilat & AgnÃ¨s Cimper & Karsten Bjerring Olsen & Colin Webb, 2006. "The Changing Nature of Manufacturing in OECD Economies," OECD Science, Technology and Industry Working Papers 2006/9, OECD Publishing.
- Jesús Crespo Cuaresma & Gernot Doppelhofer & Martin Feldkircher, 2009. "Economic Growth Determinants for European Regions: Is Central and Eastern Europe Different?," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 22-37.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6185. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.