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EU enlargement and real economic convergence

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  • Borut Vojinovic
  • Zan Oplotnik
  • Mariusz Prochniak

Abstract

This article presents an analysis of economic implications of the major EU enlargement in 2004. The research is based on sigma (σ) and beta (β) convergence of per capita GDP among the 10 countries which joined the European Union in 2004. Our results confirm the existence of both types of convergence in the second half of the 1990s and the 2000s. Generally, the poorer new EU member states grew faster than the richer new EU member states. As a result, the income gap between these two groups of countries has narrowed although it still remains quite large. The convergence occurred at the rate of 4.2% during the period 1992-2006 and 7.0% and 9.6% during the sub-periods 1995-2006 and 2002-06 respectively.

Suggested Citation

  • Borut Vojinovic & Zan Oplotnik & Mariusz Prochniak, 2010. "EU enlargement and real economic convergence," Post-Communist Economies, Taylor & Francis Journals, vol. 22(3), pages 303-322.
    • Handle: RePEc:taf:pocoec:v:22:y:2010:i:3:p:303-322
    DOI: 10.1080/14631377.2010.498681
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    1. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    2. Urmas Varblane & Priit Vahter, 2005. "An Analysis Of The Economic Convergence Process In The Transition Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 37, Faculty of Economics and Business Administration, University of Tartu (Estonia).
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    Cited by:

    1. Crespo Cuaresma, Jesus & Havettová, Miroslava & Lábaj, Martin, 2013. "Income convergence prospects in Europe: Assessing the role of human capital dynamics," Economic Systems, Elsevier, vol. 37(4), pages 493-507.
    2. Mateusz Pipień & Sylwia Roszkowska, 2019. "The heterogeneity of convergence in transition countries," Post-Communist Economies, Taylor & Francis Journals, vol. 31(1), pages 75-105, January.
    3. Nikolay Nenovsky & Kiril Tochkov, 2013. "The Distribution Dynamics of Income in Central and Eastern Europe relative to the EU: A Nonparametric Analysis," William Davidson Institute Working Papers Series wp1063, William Davidson Institute at the University of Michigan.
    4. Christos Kollias & Petros Messis, 2020. "Are future enlargement candidate countries converging with the EU?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(3), pages 453-473, August.
    5. 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.
    6. 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.
    7. Petrović, Pavle & Gligorić Matić, Mirjana, 2023. "Manufacturing productivity in the EU: Why have Central and Eastern European countries converged and Southern EU countries have not?," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 166-183.
    8. Hodula, Martin, 2022. "Bringing the flashlight: Shadow banking in European Union countries," Finance Research Letters, Elsevier, vol. 47(PB).
    9. Kaitila, Ville, 2013. "Convergence, income distribution, and the economic crisis in Europe," ETLA Working Papers 14, The Research Institute of the Finnish Economy.
    10. Dimitar Eftimoski, 2020. "Some new insights on economic convergence and growth in Central, Eastern, and Southeastern Europe," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 47(4), pages 863-884, November.
    11. Yerken Turganbayev, 2016. "Regional convergence in Kazakhstan," Post-Communist Economies, Taylor & Francis Journals, vol. 28(3), pages 314-334, July.
    12. Matkowski, Zbigniew & Prochniak, Mariusz & Rapacki, Ryszard, 2016. "Real Income Convergence between Central Eastern and Western Europe: Past, Present, and Prospects," EconStor Conference Papers 146992, ZBW - Leibniz Information Centre for Economics.

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