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Real Convergence, Steps from Adherence to Integration

Author

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  • Mihail Busu

    (Academia de Studii Economice din Bucuresti)

  • Adina Gyorgy

    (Academia de Studii Economice din Bucuresti)

Abstract

The macroeconomic model Solow-Swan shows that the marginal rates of capital, technology and labor force, with positive values, have the capacity to stimulate the economic growth of the emergent economies, as in the case of Romania, for the 2005-2014 period, facilitating the determination of specific correlations between macroeconomic indicators to analyze the convergence towards the average European Union (EU). The economic theory, highlighted in particular by the Solow-Swan model, was applied in the current paper, to determine the potential of real convergence. Moreover, the statistics for the period 2005-2014 facilitated the analysis of the growth and recession factors specific to economies of Central and Eastern Europe and placed Romania amongst the EU countries with emergent economies and potential of economic growth. The European Commission’s reports regarding the macroeconomic imbalance procedure draw attention on the same indicators presented in the article to address proper recommendations and support corrective measures. Making a step from nominal to real convergence, the latter derives naturally from the need to recoup the gaps in comparison with developed economies amongst countries of the Euro Area.

Suggested Citation

  • Mihail Busu & Adina Gyorgy, 2016. "Real Convergence, Steps from Adherence to Integration," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 18(42), pages 303-303, May.
    • Handle: RePEc:aes:amfeco:v:42:y:2016:i:18:p:303
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    Cited by:

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    2. Mihail Busu & Alexandra Catalina Nedelcu, 2017. "Sustainability and Economic Performance of the Companies in the Renewable Energy Sector in Romania," Sustainability, MDPI, vol. 10(1), pages 1-16, December.
    3. Brancu Cristian & Turcu Oana, 2023. "Communication Strategies within the Public and Private Companies in Romania," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 17(1), pages 380-387, July.
    4. Cristian BUSU & Mihail BUSU, 2018. "The Circular Economy Model. Case Of Romania," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 12(1), pages 554-564, November.
    5. Turcu Oana & Brancu Cristian, 2023. "The Impact of the Beauty Industry on the Economic Growth at the European Union Level," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 17(1), pages 468-474, July.
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    More about this item

    Keywords

    economic growth; emergent economies integration; real convergence; macroeconomic model.;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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