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The issue of convergence: New empirical evidence for the Central Eastern Europe area

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  • E.TSANANA
  • C. KATRAKILIDIS

Abstract

This paper explores empirically the convergence path in selected Central Eastern European (CEE) economies. The empirical analysis uses per capita Gross Domestic Product (GDP) in Purchasing Power Parity (PPP) in constant prices of 2005 and covers the period 1980-2010. The empirical investigation relies on Nahar - Inder’s (2002) methodology in combination with the testing procedure of Bai - Perron (2003) to take into consideration the presence of possible structural breaks. The results demonstrate remaining disparities and support evidence in favor of catching up with EU-15 and the EU-27 averages only for three out of the ten examined economies.

Suggested Citation

  • E.Tsanana & C. Katrakilidis, 2016. "The issue of convergence: New empirical evidence for the Central Eastern Europe area," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 16(1), pages 53-62.
    • Handle: RePEc:eaa:aeinde:v:16:y:2016:i:1_5
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    References listed on IDEAS

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    More about this item

    Keywords

    catching up; structural breaks; CEE countries;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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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