The Price Convergence of the Czech Republic and Euro Zone Countries

Abstract

The subject of the article was to study a price convergence of the Czech Republic (CR) and Euro zone countries in the two aspects: spatial and time aspect. In the first one the convergence of selected economies to the Euro zone average price level was researched. In the second one the convergence or divergence process was studied in the individual years of the analysis. The main aim was to prove the hypothesis that the price level of the CR converged to the average price level of the Euro zone in the selected time period 1995-2010. An analysis was conducted by the panel data regression model. The data of comparative price levels of GDP (CPL) used in the analysis were obtained in the Eurostat database.