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Reálná konvergence - předpoklad plynulé integrace do Evropské unie
[Real convergence - a presumption for a fluent integration into the European union]

Author

Listed:
  • Růžena Vintrová

Abstract

The economies of Central and Eastern Europe are acceding to the EU with economic levels well behind those of current Member States. Combining countries with different economic standards does give rise to certain risks. Where the convergence of the price level is too fast and is not underpinned by labour productivity growth above the level of growth in EU and by the related balancing of wage income, it could pose a threat to the standard of living due to the decline in real wages. If wage pressures are too strong, and force a rise in wages that is incommensurate to labour productivity, the competitiveness of the business sphere would decline, economic growth would slow down, and unemployment would ultimately rise. A key requirement for the smooth progression of integration is a robust economic growth on the basis of labour productivity and its harmonization with wage level and price level developments.

Suggested Citation

  • Růžena Vintrová, 2003. "Reálná konvergence - předpoklad plynulé integrace do Evropské unie [Real convergence - a presumption for a fluent integration into the European union]," Politická ekonomie, Prague University of Economics and Business, vol. 2003(1), pages 79-91.
    • Handle: RePEc:prg:jnlpol:v:2003:y:2003:i:1:id:394
    DOI: 10.18267/j.polek.394
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    References listed on IDEAS

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    1. Mr. Michael Sarel, 1995. "Nonlinear Effects of Inflationon Economic Growth," IMF Working Papers 1995/056, International Monetary Fund.
    2. Vladimír Nachtigal & Martin Srholec & Vladimír Tomšík & Markéta Votavová, 2002. "Convergence process of central and eastern european countries toward the european union as measured by macroeconomic polygons," Prague Economic Papers, Prague University of Economics and Business, vol. 2002(4), pages 291-317.
    3. Peter Havlik, 2001. "Transition Countries in 2001: Robust Domestic Demand, Concerns About External Fragility Reappear," wiiw Research Reports 277, The Vienna Institute for International Economic Studies, wiiw.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    real convergence; EU enlargement; economic level of candidate countries; catching-up effect; unit labour costs;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

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