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Economic Convergence in the EU: A Complexity Approach

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  • Gül Ertan Özgüzer
  • Ayla Oğuş-Binatlı

Abstract

This paper examines the effect of economic complexity on economic growth in the context of the EU countries. Our results suggest that a group of countries in the EU whose economic complexity exceeds a certain threshold tend to converge to levels of income corresponding to their measured complexity. On the other hand, the interaction of the current account deficit with economic complexity has important effects on growth for a second group of countries with lower levels of complexity. Since we also find that income convergence is faster within the first group, we argue that convergence is much faster for countries whose economic complexity exceeds a certain threshold.

Suggested Citation

  • Gül Ertan Özgüzer & Ayla Oğuş-Binatlı, 2016. "Economic Convergence in the EU: A Complexity Approach," Eastern European Economics, Taylor & Francis Journals, vol. 54(2), pages 93-108, March.
    • Handle: RePEc:mes:eaeuec:v:54:y:2016:i:2:p:93-108
    DOI: 10.1080/00128775.2015.1126787
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    Cited by:

    1. Freire, Clovis, 2019. "Economic diversification: A model of structural economic dynamics and endogenous technological change," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 13-28.
    2. Ovidiu Stoica & Angela Roman & Delia-Elena Diaconașu, 2019. "Real Convergence and European Integration with Focus on the New Member States," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 66(3), pages 215-228, December.

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    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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