scholarly journals Neoclassical and technological catching-up as the channels of the real convergence process in the European Union

2017 ◽  
Vol 10 (2) ◽  
pp. 7-18
Author(s):  
Izabela Młynarzewska- Borowiec ◽  
Keyword(s):  
European Union ◽  
The European Union ◽  
The Real ◽  
Catching Up ◽  
Real Convergence ◽  
Convergence Process

scholarly journals Real Convergence In The European Union: “New” Versus “Old” Member States

2020 ◽  
Vol 4 (4) ◽  
pp. 5-17
Author(s):  
Ana-Maria Holobiuc
Keyword(s):  
European Union ◽  
Public Expenditures ◽  
The European Union ◽  
Conditional Convergence ◽  
Cross Sectional ◽  
Member States ◽  
New Member States ◽  
Catching Up ◽  
Panel Regressions ◽  
Real Convergence

The recent waves of enlargement of the European Union have created not only opportunities, but also challenges, emphasizing the complexity of the integration process and the difficulty to assure cohesion between Members. The aim of this paper is to examine real convergence in an enlarged European Union and to conduct a comparative analysis between the New (13) and the Old Members (15). In this respect, we have studied absolute and conditional convergence between 1995 and 2019, taking into consideration the level of GDP per capita. The methodological tools of the research were β-convergence based on cross-sectional and panel regressions and σ-convergence. The results of our study confirm the 2% law of convergence within the European Union between 1995 and 2019. However, the analysis of the economic performances among the New and Old Members led us to opposite results: while the catching-up speed among the New Member States reached on average 2.7%, in the Old Members we didn’t identify a statistically significant relationship between the initial income and the subsequent growth rates. In order to account for economic and social differences between the Member States, we have examined conditional convergence, illustrating the defining role of investment, trade and labor productivity in catalyzing convergence both in the New and Old Members. In contrast, the empirical study suggests that an increased level of public expenditures and over-indebtedness within the European Union threaten the catching-up process. The results of our paper can be useful for the European decision makers, illustrating the factors that might contribute to the achievement of the objective of real convergence within the European Union. Keywords: real convergence, European Union, New Member States, β-convergence, σ-convergence.

scholarly journals Multi-speed Europe? An Analysis of the Real Convergence within the European Union

2020 ◽  
Author(s):  
Dumitru Miron ◽  
Ana-Maria Holobiuc
Keyword(s):  
European Union ◽  
Central And Eastern Europe ◽  
Decision Makers ◽  
Southern Europe ◽  
The European Union ◽  
Member States ◽  
The North ◽  
Catching Up ◽  
Real Convergence ◽  
North Western

Reaching an appropriate level of economic, social and territorial convergence has been a strategic goal for European policy and decision-makers. The author’s first assumption is that although in the early stages of the regional project, the Member States had similar growth and development levels, with the advancement of the integration process, the development asymmetries increased. In this paper, the authors stress the fact that the European decision-makers and researchers have become more and more interested to study if the Member States of the European Union meet the criteria for certain types of convergence: nominal, real, legal, structural and institutional. This paper brings to the fore-front the process of real convergence, trying to respond to the question if the Member States are catching-up, or are diverging. Moreover, taking into consideration the enlargement of the European Union with the countries from Central and Eastern Europe, we have studied the main trends within this group of countries. In this respect, we have calculated the σ and β convergence for three geographical clusters of countries: Central Eastern, North Western and Southern Europe. The results obtained show that the economies of the New Member States increased faster than those of the North-Western countries, experiencing a significant speed of convergence. In contrast, the North-Western countries recorded a negative pace in terms of convergence and significant discrepancies between them. In conclusion, the paper shows that the desiderate of real convergence becomes more and more difficult to achieve as while the Central and Eastern Europe states make important steps in reducing the disparities between them and also catching up with the European Union’s average, the Southern Europe countries are diverging.   Keywords: European Union, real convergence, σ-convergence, β-convergence

scholarly journals The Importance of the Sustainability of the Romanian Convergence Process to the Euro Zone

2018 ◽  
Vol 13 (3) ◽  
pp. 161-170
Author(s):  
Ioana Raluca Sbârcea
Keyword(s):  
European Union ◽  
Euro Area ◽  
The European Union ◽  
Convergence Criteria ◽  
Euro Zone ◽  
Euro Adoption ◽  
Real Convergence ◽  
Convergence Process ◽  
The Moment

Abstract Since 2007, Romania has been under the under the glance of experts in the European Union, but also under the strict monitoring of the NBR and also under the pressure of citizens and investors' expectations about the moment of euro adoption. My research concerns have also been channeled to this point of maximum interest, impact and timeliness, which is why I have proposed through this paper to highlight a synthetic situation regarding the fulfillment of the convergence criteria from the moment of accession to the European Union, to the present. The objective of this paper is to reflect, in dynamics and correlation, the degree of fulfillment of the nominal and real convergence criteria, the sustainability of the levels achieved for certain indicators, so necessary for joining the single currency, without shocks. Romania is a country subject to frequent fluctuations at all levels: economic, political, legislative, also reflected in the fluctuations in meeting the convergence criteria. The lack of medium and long-term sustainability of the criteria considered necessary for joining the euro area will make this desiderate ever more remote.

scholarly journals Price levels convergence of consumer expenditures in the European Union 

2012 ◽  
Vol 52 (No. 5) ◽  
pp. 197-204
Author(s):  
M. Ševela
Keyword(s):  
European Union ◽  
Rate Of Convergence ◽  
Price Level ◽  
Initial Position ◽  
The European Union ◽  
Baltic Countries ◽  
Price Levels ◽  
Real Convergence ◽  
Convergence Process ◽  
Consumer Expenditures

The convergence of price levels is one of the important aspects of a real convergence and is often viewed as a criterion for the evaluation of preparedness. The convergence process of comparative price levels can run either through the exchange rate channel and/or that of nominal prices. The paper is focused on the assessment of comparative price levels and the rate of their convergence in the enlarged European Union within the period of 1999–2003. With the exception of Cyprus, the price levels in the new EU member countries were significantly lower. The greatest differences from the price level of EU countries existed in Poland, Slovakia and Baltic countries. The new member countries differ also in the rate of convergence. When combining their initial position and the rate of convergence, it can be concluded that all countries will be able to reach 80% of the comparative price level of the European Union till the year 2010. In Poland, the development is very unfavourable because its price level will reach only 55% provided that there will be no changes in its development. 

Regional Allocation of Structural Funds in the European Union

10.1068/c21m ◽  
2002 ◽  
Vol 20 (5) ◽  
pp. 655-677 ◽  
Author(s):  
Carlos Gil ◽  
Pedro Pascual ◽  
Manuel Rapún
Keyword(s):  
European Union ◽  
Theoretical Foundation ◽  
Equal Opportunities ◽  
The European Union ◽  
Distribution Problem ◽  
Structural Funds ◽  
Empirical Procedure ◽  
Real Convergence ◽  
Real Distribution ◽  
Nonlinear Programming Method

Economic disparities among the regions of the European Union are more pronounced than among countries. Structural Funds have played a crucial compensatory role, promoting the economic development and real convergence of lagging regions. The amount of resources destined to regional policy and the conflicts arising from its funding and distribution create the need for an adequate theoretical foundation or model to help politicians solve the distribution problem. In this paper we propose an empirical procedure to carry out and evaluate different distributions of funds for the periods 1989 – 93 and 1994 – 99. We begin with the estimation of an augmented production function to permit the calculation of the expected GDP per capita. We then propose a nonlinear programming method to simulate alternative distributions of Structural Funds among Objective 1 regions, based upon two different approaches: equal development, and equal opportunities. For these two approaches we calculate different possibilities, ranging from highly efficient to highly equitable, with the result that we are able to show the ‘frontier’ of optimal distributions. Finally, we evaluate these results and compare them with the real distribution.

What, Where and Why is Europe? Some Answers from Recent Historiography

2010 ◽  
Vol 40 (4) ◽  
pp. 701-713 ◽  
Author(s):  
Philipp Nielsen
Keyword(s):  
European Union ◽  
Big Bang ◽  
The Political ◽  
Clear Definition ◽  
The European Union ◽  
Alexander Von Humboldt ◽  
Catching Up ◽  
History Of ◽  
Institutional Expansion ◽  
Definition Of

Writing the history of a continent is generally a tricky business. If the continent is not even a real continent, but rather ‘a western peninsula of Asia’ (Alexander von Humboldt) without a clear definition of where the continent becomes peninsula, things do not get any easier. Despite these problems there is no dearth of trying. In fact, writing European histories seems to become more fashionable by the year — ironically just as the political and institutional expansion of Europe is losing steam. While the European Union is catching its breath, the historians are catching up. With the first wave of post-Euro and post-big-bang-Enlargement literature written, it is time for the reviewer to survey the landscape — and to provide some guideposts for future exploration.

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