Article

An Empirical Analysis of Income Convergence in the European Union

Applied Economics Letters (Impact Factor: 0.23). 01/2010; 18(1001). DOI: 10.1080/13504851.2011.560104
Source: RePEc

ABSTRACT In this paper, we investigate the convergence process within the European Union (27 countries). More particularly, we study the convergence process of the new entrants from Central and Eastern Europe and of the 15 Western countries between 1990 and 2007. Applying a panel approach to the convergence equation derived by Mankiw et al. (1992) from the Solow model, we highlight the existence of heterogeneity in the European Union and show that new entrants and former members of the European Union can be seen as belonging to significantly differ ent groups of convergence. The existence of heterogeneity in the European Union or the Eurozone might affect their stability as the recent Greece’s sovereign debt crisis illustrates it.

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Available from: Laurent Cavenaile, Aug 05, 2015
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    • "El cuadro 1.1 muestra que a nivel internacional se ha encontrado evidencia muy variada, predominando la existencia de divergencia absoluta, convergencia condicional para países de áreas económicas comunes y convergencia heterogénea o clubes de convergencia. Similarmente, Azomahou et al. (2011), Cavenaile and Dubois (2011) y Crespo- Cuaresma et al. (2008) encuentran convergencia entre estados de la Unión Europea. Estos últimos casos constituyen una especie de " hibrido " , dado que no son trabajos de convergencia regional, pero sí a nivel de regiones económicas que engloban a varios países. "
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