scholarly journals Paths of income convergence between country pairs within Europe

2014 ◽  
Vol 59 (201) ◽  
pp. 123-155 ◽  
Author(s):  
Mirjana Gligoric
Keyword(s):  
Growth Model ◽  
European Countries ◽  
Income Convergence ◽  
Significant Evidence ◽  
Catching Up ◽  
Transitional Countries ◽  
Long Run ◽  
Convergence Clubs ◽  
Similar Growth

This paper explores income convergence in European countries. Unlike previous research, the analysis is based on the pair-wise approach (Pesaran, 2007), identifying four cases: long-run convergence, catching-up, lagging-behind, and divergence. The results suggest that catching-up prevails, while no significant evidence was found for the existence of long-run convergence at the whole sample level. Still, three convergence clubs appear that consist of countries recording long-run convergence, two in transitional countries and one involving advanced countries, which indicate the similar growth model of the countries belonging to each club. Nevertheless, the results do not allow us to claim with certainty that the income paths of the club members will not exhibit systematic tendencies toward divergence or changes in membership in future.

Income convergence in Europe: Catching up or falling behind?

2012 ◽  
Vol 62 (2) ◽  
pp. 183-204 ◽  
Author(s):  
Megan Czasonis ◽  
Michael Quinn
Keyword(s):  
European Countries ◽  
Eastern European ◽  
The European Union ◽  
Income Convergence ◽  
Euro Zone ◽  
Long Run ◽  
Time Period ◽  
Eastern European Countries ◽  
Time Frames ◽  
The Eu

One of the motivations for a country to join the European Union is the belief that this will boost short- and long-run incomes. Researchers have tested the hypothesis of income convergence in different settings using either regression or unit root analysis, with mixed results. In this paper, we use both methods on the same samples over a significant time period. This allows us to judge differences in results across varied time-frames and methodologies. The focus of these tests is on convergence to German and EMU average incomes by Eastern European countries and those within the Euro-zone from 1971–2007. The evidence for convergence is mixed. Among the Euro-zone countries, there is more evidence of convergence in the 1970s and 1980s than recently. There is significant evidence that Eastern Europe experienced convergence and that capital formation was one of the root causes. While the results do not support the hypothesis that joining the EU increases convergence, reforms undertaken in the 1990s by Eastern European countries in preparation for joining may have helped them to “catch up”, even if the act of joining the EU did not directly impact convergence.

scholarly journals Catch up growth and social capability in developing countries: A conceptual and measurement proposal

OASIS ◽  
2017 ◽  
pp. 7-23
Author(s):  
Martin Andersson ◽  
Andrés Palacio
Keyword(s):  
Social Inclusion ◽  
Capabilities Approach ◽  
Income Convergence ◽  
Economic Progress ◽  
Catching Up ◽  
Long Run ◽  
Catch Up ◽  
Main Components ◽  
Social Capability

While the income per capita in the developing world since the turn of the Millennium has grown faster than that of the developed world, the question whether there is an ongoing process of catching up between countries remains. The notion of income convergence has provided many insights into the sources for long-run growth but has largely neglected the role of social capabilities in economic development. By social capabilities we mean the qualification of the ‘theory of convergence’ which asserts that productivity growth rates  between countries tend to vary inversely with regard to productivity levels. The social capabilities approach holds that a country’s potential for rapid growth is strong when “it is technologically backward but socially advanced” (see Abramovitz, 1986:388). This means that the potential to catch up under globalization is strongest for countries in which social capabilities are developed to allow successful use of technologies and where institutional arrangements are conducive to economic progress. Yet there is no clear agreement in the literature on the main components of social capabilities or how to measure them. Our framework argues that the role of capabilities in catching up needs to understand them in terms of structural transformation, economic and social inclusion, state´s autonomy and accountability. Without progress in these dimensions within-country inequality may increase and might in turn lead to stagnating growth and slim prospects for global income convergence.

scholarly journals Revisiting the Environmental Kuznets Curve Hypothesis: A Case of Central Europe

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3415
Author(s):  
Bartosz Jóźwik ◽  
Antonina-Victoria Gavryshkiv ◽  
Phouphet Kyophilavong ◽  
Lech Euzebiusz Gruszecki
Keyword(s):  
Economic Growth ◽  
Co2 Emissions ◽  
Central Europe ◽  
Environmental Kuznets Curve ◽  
European Countries ◽  
Kuznets Curve ◽  
The European Union ◽  
Ekc Hypothesis ◽  
Central European ◽  
Long Run

The rapid economic growth observed in Central European countries in the last thirty years has been the result of profound political changes and economic liberalization. This growth is partly connected with reducing carbon dioxide (CO2) emissions. However, the problem of CO2 emissions seems to remain unresolved. The aim of this paper is to test whether the Environmental Kuznets Curve (EKC) hypothesis holds true for Central European countries in an annual sample data that covers 1995–2016 in most countries. We examine cointegration by applying the Autoregressive Distributed Lag bound testing. This is the first study examining the relationship between CO2 emissions and economic growth in individual Central European countries from a long-run perspective, which allows the results to be compared. We confirmed the cointegration, but our estimates confirmed the EKC hypothesis only in Poland. It should also be noted that in all nine countries, energy consumption leads to increased CO2 emissions. The long-run elasticity ranges between 1.5 in Bulgaria and 2.0 in Croatia. We observed exceptionally low long-run elasticity in Estonia (0.49). Our findings suggest that to solve the environmental degradation problem in Central Europe, it is necessary to individualize the policies implemented in the European Union.

scholarly journals Effects of patents on the transition from stagnation to growth

2019 ◽  
Vol 33 (2) ◽  
pp. 395-411 ◽  
Author(s):  
Angus C. Chu ◽  
Zonglai Kou ◽  
Xilin Wang
Keyword(s):  
Economic Growth ◽  
Intellectual Property ◽  
Property Rights ◽  
Population Size ◽  
Intellectual Property Rights ◽  
Growth Model ◽  
Patent Protection ◽  
Theoretic Analysis ◽  
Schumpeterian Growth ◽  
Long Run

Abstract This study provides a growth-theoretic analysis of the effects of intellectual property rights on the take-off of an economy from an era of stagnation to a state of sustained economic growth. We incorporate patent protection into a Schumpeterian growth model in which take-off occurs when the population size crosses an endogenous threshold. We find that strengthening patent protection has contrasting effects on economic growth at different stages of development. Specifically, it leads to an earlier take-off but also reduces economic growth in the long run.

scholarly journals Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries

2019 ◽  
Vol 11 (19) ◽  
pp. 5421 ◽  
Author(s):  
Ștefan Cristian Gherghina ◽  
Liliana Nicoleta Simionescu ◽  
Oana Simona Hudea
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Institutional Quality ◽  
European Countries ◽  
Transport Infrastructure ◽  
Eastern European ◽  
Long Run ◽  
Eastern European Countries

This study aims to examine the link between foreign direct investment (FDI) inflows and economic growth, also considering several institutional quality variables, as well as sustainable development goals (SDGs) set in the 2030 Agenda for Sustainable Development. By estimating panel data regression models for a sample of 11 Central and Eastern European countries, from 2003 to 2016, the empirical outcomes provide support for a non-linear relationship between FDI and gross domestic product per capita. Regarding institutional quality, it is found that control of corruption, government effectiveness, regulatory quality, rule of law, and voice and accountability positively influence growth, while political stability and absence of violence/terrorism is not statistically significant. Moreover, SDGs such as poverty, income distribution, education, innovation, transport infrastructure, and information technology are noteworthy drivers of growth. The outcomes of panel fully modified and dynamic ordinary least squares partly confirm the findings. The panel vector error-correction model Granger causalities provide support for a short-run one-way causal association running from FDI to growth and a long-run two-way causal connection among FDI and growth. Furthermore, in the long run, unidirectional causal relationships running from each institutional quality indicator to economic growth and FDI are set out.

The Guest-Worker in Western Europe — An Obituary

1986 ◽  
Vol 20 (4) ◽  
pp. 761-778 ◽  
Author(s):  
Stephen Castles
Keyword(s):  
Ethnic Minorities ◽  
Western Europe ◽  
Family Reunification ◽  
European Countries ◽  
Guest Workers ◽  
Labor Migrants ◽  
Guest Worker ◽  
Long Run ◽  
Permanent Migration ◽  
Migratory Process

Most West European countries recruited guest-workers (temporary labor migrants) to fuel the postwar boom. The significance of this flexible and mobile labor source is examined for six countries. The dynamics of the migratory process led to family reunification and settlement, against the original intentions of the workers, employers and states concerned. The recruitment of guest-workers stopped after 1974, but many migrants stayed on, becoming permanent ethnic minorities, in a situation of economic and social crisis. It is argued that guest-worker systems inevitably lead to permanent migration in the long run, and that it is better to plan for orderly settlement through appropriate policies.

Rethinking the ‘Public Service Bargain’: the changing (legal) position of civil servants in Europe

2013 ◽  
Vol 79 (1) ◽  
pp. 91-109 ◽  
Author(s):  
Frits M van der Meer ◽  
Caspar F van den Berg ◽  
Gerrit SA Dijkstra
Keyword(s):  
Public Management ◽  
New Public Management ◽  
Two Dimensions ◽  
Point Of View ◽  
Civil Servants ◽  
European Countries ◽  
Labor Conditions ◽  
Long Run ◽  
National Debate ◽  
Legal Position

It can be argued that because of the rise of New Public Management and the growing dominance of labor law and HRM practices, the so-called ‘traditional’ public law formulation of the position of civil servants has come under pressure in a number of Western European countries in recent decades and have shaken the ‘bargain’ agreed between the political and administrative leaders since the Second World War. By contrast, in Central and Eastern Europe and Britain, new Weberian-type civil service legislation has been introduced. In this analysis, we examine both apparent opposites from a public sector bargains perspective and find that European countries are at a crossroads in their reflection on the ‘bargain’. Points for practitioners For practitioners in this field two considerations are important to note. The first is that while the discussion about the (legal) position of civil servants within their political-administrative system may seem to be a national debate, in essence it forms part of a more general debate that is conducted all across Europe. The second is that both theoretically and empirically, two dimensions of the bargain have to be distinguished, namely on the one hand the material labor conditions (pay, job protection, etc.) and on the other hand the values of bureaucracy (impartiality, integrity, loyalty, etc.). As our empirical analysis shows, these two dimensions have become increasingly independent from each other in the discussions and reforms in various countries over recent decades. In other words, managerial reforms in terms of material labor conditions have in practice been paired with the renewed emphasis on Weberian values of bureaucracy. Whether this decoupling is sustainable from a policy point of view in the long run (i.e. whether Weberian-style labor conditions are or are not conditional for high levels of Weberian values of bureaucracy), remains to be seen.

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