THE REAL CONVERGENCE OF CEE COUNTRIES: A STUDY OF REAL GDP PER CAPITA

• Authors: Zárembová Andrea , Štefan Lyócsa , Eduard Baumöhl
• Languages of publication: EN

Abstracts

EN

The paper examines the unconditional sigma and time-series convergence of a real GDP per capita (measured in national currencies and euros) for CEE8 countries during the 1995 : Q1 – 2011 : Q1 period by applying the unit root framework using the DF-GLS test and the Lee and Strazicich (2003; 2004) test, which allows for endogenous breaks in trends and constants. We selected Germany as a benchmark country for relative real GDP per capita because of its geographical and economical position relative to all CEE8 countries. We have found that both sigma convergence and time-series convergence were present for most of the CEE8 countries prior to the breaks in trends, but after the breaks, the convergence slowed or reversed and thus indicated divergence.

Keywords

EN

TIME-SERIES CONVERGENCE; SIGMA CONVERGENCE; CEE; UNIT ROOT TEST; GDP

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2012
• Volume: 60
• Issue: 6
• Pages: 642 – 656

Contributors

author

Zárembová Andrea

• Ekonomická univerzity Bratislava, Podnikovohospodárska fakulta v Košiciach, Katedra ekonomiky, Tajovského 13, 041 30 Košice, Slovak Republic

author

Štefan Lyócsa

author

Eduard Baumöhl