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FDI Convergence versus Real and Structural Convergence at the EU Level. An Approach Based on the GINI Coefficient

Author

Listed:
  • Vasile Alecsandru STRAT

    (The Bucharest University of Economic Studies, Romania)

  • Oana Cristina POPOVICI

    (Institute for Economic Forecasting, Romanian Academy, Romania)

Abstract

The main goal of this paper is to analyze the evolution of disparities registered among the European Union member states for several variables, indicating the real convergence, the structural convergence and the stocks of FDI. The paper provides an assessment of the linkage between these evolutions during 1993 to 2013, using a methodology based on time series of Gini coefficients, at the entire Union and also at the level of the new and the old EU member states. We found decreasing disparities in the stocks of FDI/capita, GDP/capita and GDP/capita produced in agriculture for the new member states, but oscillating evolutions for the old ones. We found evidence suggesting a positive relationship among these three phenomena. Therefore, FDI can be considered as an enhancer for both real and structural convergence in the EU and the new EU member states. The finding was not confirmed for the old member states.

Suggested Citation

  • Vasile Alecsandru STRAT & Oana Cristina POPOVICI, 2015. "FDI Convergence versus Real and Structural Convergence at the EU Level. An Approach Based on the GINI Coefficient," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 18(1), pages 150-162, June.
    • Handle: RePEc:rom:econmn:v:18:y:2015:i:1:p:150-162
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    References listed on IDEAS

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    More about this item

    Keywords

    foreign direct investments; Gini coefficient; real convergence; structural convergence; European Union.;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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