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Convergence among the CEE-8 economies and their catch-up towards the EU-15

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  • Cieślik, Andrzej
  • Wciślik, Dominika Róża

Abstract

The enlargement of the European Union in 2004 to include Central and Eastern European countries has revived the convergence debate. This study concentrates on the empirical investigation of real GDP per capita convergence between the CEE-8 and their catch-up towards the old EU-15 member states. The empirical study is based on the innovative analytical framework of convergence testing proposed by Phillips and Sul that accounts for heterogeneity in technological progress across countries. Our empirical results indicate that in the EU-15 no distinct convergent patterns exist. However, there is convergence among the CEE-8 countries. Moreover, the hypothesis of the CEE-8 convergence towards the old EU-15 is rejected. Nevertheless, the CEE-8 seem to be converging towards two largest EU countries: Germany and France.

Suggested Citation

  • Cieślik, Andrzej & Wciślik, Dominika Róża, 2020. "Convergence among the CEE-8 economies and their catch-up towards the EU-15," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 39-48.
    • Handle: RePEc:eee:streco:v:55:y:2020:i:c:p:39-48
    DOI: 10.1016/j.strueco.2020.07.006
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    More about this item

    Keywords

    Catch-up effect; Central and Eastern European countries; Convergence; Economic growth;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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