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Economic Growth and Development of the Concept of Convergence – Theoretical Basis

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  • Rossitsa Rangelova

Abstract

The aim of the study is to outline the theoretical foundations of the concept of convergence related to economic growth, as well as to systematise the different types of convergence. The development of the concept of convergence, which is a result of many applied researches worldwide on the connection between growth and convergence, has been theoretically traced. The specifics of neoclassical and endogenous theories of economic growth are briefly presented as the basis of the concept of convergence, including its types – alpha (absolute), beta (relative), “club” and sigma convergence. The types of convergence that appeared in these studies are critically analysed – structural, based on labour productivity, regional, price, monetary, business cycle, and others. For EU countries, the interaction between nominal and real convergence has been studied.

Suggested Citation

  • Rossitsa Rangelova, 2021. "Economic Growth and Development of the Concept of Convergence – Theoretical Basis," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 3-26.
    • Handle: RePEc:bas:econst:y:2021:i:5:p:3-26
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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