Income convergence in the enlarged European Union

0,41
MB

81
stron

6091
ID Pan-European Institute

2007
rok

1 INTRODUCTION .2

2 CONCEPT OF ECONOMIC GROWTH AND MAIN GROWTH THEORIES3

2.1 Determinants of growth and its measuring.4

2.2 Growth models 5

3 ECONOMIC INTEGRATION AS DETERMINANT OF GROWTH.11

3.1 Deeper determinants of growth12

3.2 Economic integration.14

3.2.1 Openness in trade .15

3.2.2 Gains from trade15

3.2.3 Foreign direct investment.19

3.2.4 Integration process19

3.3 Geographical location24

3.4 Role of institutions in integration25

4 CONVERGENCE IN INCOME LEVELS.28

4.1 The convergence hypothesis.29

4.1.1 Definition of convergence 29

4.1.2 Convergence according to growth theories32

4.1.3 Divergence 34

4.2 Empirical studies on convergence .35

5 ECONOMIC DEVELOPMENT IN THE NEW EU MEMBERS AND THEIR CATCHUP PROCESS 39



5.1 Integration process in the Central and Eastern European economies40

5.1.1 Economic integration into European Union40

5.1.2 Geographical factors45

5.1.3 Institutional development .46

5.2 Growth and convergence in Central and Eastern Europe 47

5.2.1 Growth in the CEE8.47

5.2.2 Convergence of the CEE8 towards EU1550

5.2.3 Regional income per capita disparities.58

5.3 Future prospects for Central and Eastern European countries.61

6 CONCLUSIONS 62

REFERENCES .66

APPENDIX 1 CEE8 countries’ exports and imports 1995–2005.70

APPENDIX 2 GDP in the EU countries in constant and current prices, 1995–2006