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Real Convergence in the European Union: An Empirical Approach

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  • Ana-Maria Holobiuc

    (Bucharest University of Economic Studies)

Abstract

One of the fundamental pillar of the European integration architecture aims the convergence of economic performance between Members. This objective has proved to be increasingly difficult to achieve nowadays, given the economic, social and sanitary challenges that occurred both at regional and global level. The aim of this paper is to study conditional β-convergence between 2000 and 2019, trying to identify the factors that enhanced economic growth. By applying panel regressions, we have found evidence in favor of the convergence process at Community’s level, taking into consideration the inverse relationship between the initial level of income and the subsequent growth rates. Moreover, the results of the empirical study suggest that factors such as gross savings, imports, real labor productivity, business freedom and citizens’ voice and accountability had a favorable impact on the economic growth rates in the European Union between 2000 and 2019.

Suggested Citation

  • Ana-Maria Holobiuc, 2020. "Real Convergence in the European Union: An Empirical Approach," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 126-133, December.
    • Handle: RePEc:ovi:oviste:v:xx:y:2020:i:2:p:126-133
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    References listed on IDEAS

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    More about this item

    Keywords

    Real convergence; conditional β-convergence; European Union;
    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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