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Assesing The Effects Of The Economic And Financial Crisis On Income Convergence In The Eurozone

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  • Ana-Maria HOLOBIUC

    (The Bucharest University of Economic Studies, Romania)

Abstract

The introduction of the single currency within the European continent has represented an unpreceded decision that has brought closer than ever 19 European countries. Although the Euro Area has been founded on strong principles and mechanisms, one of the main concern of the European policy makers derive from the asymmetries that still persist between the Old and New Member States. Moreover, the economic prosperity and political stability of this group was recently threatened by the economic and financial crisis, calling into question the capacity of Eurozone to preserve its unity. The aim of this paper is to examine income convergence in the Eurozone, taking into consideration the evolutions which occurred before and after the outbreak of the economic and financial crisis. In this respect, we have calculated the absolute ß- and s-convergence for the New and Old Member States included in the Eurozone between 2000 and 2018 and during two sub-periods (2000-2008 and 2009-2018), illustrating that the Central and Eastern European countries have been catching-up at the beginning of the 21st century.

Suggested Citation

  • Ana-Maria HOLOBIUC, 2020. "Assesing The Effects Of The Economic And Financial Crisis On Income Convergence In The Eurozone," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 5(3), pages 134-140.
    • Handle: RePEc:brc:brccej:v:5:y:2020:i:3:p:134-140
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    References listed on IDEAS

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    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Gligor, Mircea & Ausloos, Marcel, 2008. "Convergence and Cluster Structures in EU Area according to Fluctuations in Macroeconomic Indices," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 297-330.
    3. Mr. Jeffrey R. Franks & Ms. Bergljot B Barkbu & Mr. Rodolphe Blavy & William Oman & Hanni Schoelermann, 2018. "Economic Convergence in the Euro Area: Coming Together or Drifting Apart?," IMF Working Papers 2018/010, International Monetary Fund.
    4. Tokarski, Paweł, 2019. "Divergence and diversity in the Euro Area: The case of Germany, France and Italy," SWP Research Papers 6/2019, Stiftung Wissenschaft und Politik (SWP), German Institute for International and Security Affairs.
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    More about this item

    Keywords

    Eurozone; income convergence; absolute convergence; economic and financial crisis;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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