Transformations in
Business & Economics
- © Vilnius University, 2002-2008
- © Brno University of Technology, 2002-2008
- © University of Latvia, 2002-2008
Article
Real Convergence of GDP per Capita in the New EU Member States
Borut Vojinović, Žan Jan Oplotnik
ABSTRACT. This paper presents the analysis of sigma (σ) and unconditional beta (β) convergences of per capita GDP among the 10 European countries which accessed the European Union in 2004. Our results confirm the existence of both types of convergence in the second half of the 1990s and the 2000s. Generally, the poorer and new EU member states grew faster than the richer new EU member states. As a result, the income gap between these countries has decreased although it still remains quite large. The convergence occurred at the rate of 2.87% during the years 1995-2006 and 3.23% during 1996-2006.
KEYWORDS: economic growth, economic convergence, transitional economies, European Union.
JEL classification: F02, F43, O11, O19.