Convergence in Emerging Europe: Sustainability and Vulnerabilities

Vamvakidis, Athanasios

doi:10.5089/9781451870398.001

Cited by 19 publications

(20 citation statements)

References 15 publications

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“…Large differences in the speed of income convergence are also proven in the work by A. Vamvakidis (2008). An undeniable reduction in the gap at the level of development between the "new" and the "old" member states was confirmed in a study by M. Gligorić (2014).…”

Section: The Theoretical Basis Of Income Convergence and The Literatusupporting

confidence: 54%

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Income convergence in the process of the Western Balkan states' accession to the European Union

Stanišić¹

2016

Ekon horizonti

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One of the main expectations in European transition economies is that the processes of building the market economy and European integrations lead to a significant increase in the living standard, as well as to catching up with the level of the income per capita achieved in developed European economies. A quarter century after the beginning of transition, many of the former socialist countries joined the EU and significantly increased their GDP per capita. On the other hand, transition in the countries of the so-called Western Balkans has disappointed in this sense. The paper tests the existence and speed of income convergence in the Western Balkan states and developed EU countries, in comparison with the so-called "New Member States". The results indicate that, despite the achieved income convergence in the pre-crisis years, the outbreak of the global economic crisis has revealed many structural and reform problems that the countries of the region have been facing for a long time. Catching up with developed EU members' average GDP per capita stopped in the Western Balkan states after the beginning of the crisis, with a simultaneous increase in the income gap between the Western Balkan states and the new EU member states.

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Section: The Theoretical Basis Of Income Convergence and The Literatusupporting

confidence: 54%

“…Velike razlike u brzini dohodovne konvergencije su dokazane i u radu A. Vamvakidis-a (2008). Neosporno smanjivanje jaza u nivou razvijenosti između "novih" i "starih" zemalja članica EU potvrđeno je i u studiji M. Gligorić (2014).…”

Section: Slika 3 Kretanje Prosečnog Bdp Per Capita (Po Paritetu Kupovunclassified

Income convergence in the process of the Western Balkan states' accession to the European Union

Stanišić¹

2016

Ekon horizonti

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“…Another line of empirical literature has shown that income convergence has also taken place between the new EU members and the old EU members, the EU-15 (Matkowski and Próchniak 2007;Vojinovic;and Próchniak 2009). 1 The rapid growth in these new EU members from Central and Eastern Europe (CEE) is mostly attributed to the growth of total factor productivity (TFP), which outperforms even the contribution from capital accumulation, while the contribution from employment growth is even negative (Salsecci and Pesce 2008;Vamvakidis 2009). Hence, within the integration process, these countries have converged in real terms and productivity growth has had a crucial role in this convergence.…”

Section: International Technology Diffusionmentioning

confidence: 99%

International Technology Diffusion

Meriküll

Poltimäe

Paas

2013

Eastern European Economics

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“…Their findings suggest that European financial markets have performed their role of reallocating capital in the region. Vamvakidis (2009) concludes that the convergence trend of emerging Europe is based on strong fundamentals and is expected to continue, although at a slower pace. In the pre-crisis period, the growth-enhancing reforms have been successfully implemented in most countries where growth has been driven mostly by productivity improvements and investment.…”

Section: Literature Reviewmentioning

confidence: 99%

External imbalances in emerging and advanced European countries

Cota

Erjavec

Bogdan

2017

Economic Research-Ekonomska Istraživanja

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This paper aims to explain some developments in current accounts across advanced and emerging European countries with a fixed exchange rate. Our main goal is to identify key factors affecting the external imbalances. This assessment of the cause of external imbalances will help us understand what has to be changed in European economies to recover the external balances going forward. We estimated a panel VAR model over the period 1999 to 2014 for a sample of 11 European countries that were split into two groups: advanced and emerging. The obtained results show that the real effective exchange rate has a negative effect on the current account balance in both groups of countries, although the effect is more pronounced in emerging than in advanced countries. Other variables such as the budget balance, economic growth, and output gap affect current account balance positively in advanced countries and negatively in emerging countries. Economic activity captured by output gap explains the highest portion of current account variations in emerging countries. In advanced countries, in addition to economic activity, the real exchange rate also plays a prominent role in current account imbalances.

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Convergence in Emerging Europe: Sustainability and Vulnerabilities

Cited by 19 publications

References 15 publications

Income convergence in the process of the Western Balkan states' accession to the European Union

Income convergence in the process of the Western Balkan states' accession to the European Union

International Technology Diffusion

External imbalances in emerging and advanced European countries

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