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The scientific investigation goal of this paper is to analyze the convergence of social protection indexes within the EU-15 member states. More specifically, we employ a panel data analysis, testing certain hypotheses of welfare convergence upon the 15 EU Member States, for the years 1990 to 2009, by considering three specific factors. GDP growth rate is used first as a proxy for the financial capacity of the system, while unemployment provides, next, a broader picture of the demand for social security benefits. Finally, the dependency ratio is used as a proxy of the countries' socio-demographic characteristics. Moreover, certain other exogenous factors reflecting economic integration are considered also. Panel data estimations confirm the existence of conditional β-convergence of social expenditure in EU-15 countries, with unemployment, dependency ratio and GDP growth having a significant impact upon the growth of social protection expenditure. With respect to specific external factors, the existing evidence is less clear.

The aim of this paper is to analyze the issue of income convergence for Portugal, Italy, Ireland, Greece, and Spain (PIIGS), towards France. The empirical analysis uses per capita GDP, in PPP and 2005 constant prices and covers the period from 1950 up to the recent pre-crisis year of 2009. The methodology applied uses nonstationary panel unit root tests both without as well as with structural breaks endogenously determined.

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Purpose:The paper looks at the issue of absolute and conditional income convergence in the States, focusing upon the growth incidence of certain fundamental economic variables, along with corruption and bureaucracy. Design/Methodology/Approach: Applying advanced panel data techniques, dating from 1995 up to 2012, we focus on two discrete European State groups. The first group consists of the Southern EU countries (i.e. Findings: The results demonstrate that investment share, human capital and country openness appear as robust growth drivers; whereas, inflation and government consumption hamper growth. However, corruption and bureaucracy seem to affect differently growth of the two groups of the European States. Practical Implications: Certain policy implications and obligations accrue to the Southern European countries vs. the Northern European ones, with respect to the effects and consequences of specific fundamental economic variables, along with corruption and bureaucracy, towards the absolute and conditional income convergence in the EU-15. Originality/Value: Macroeconomic policies that affect economic growth, directly through their effect on physical and human capital accumulation and macroeconomic stability, reflected in low and stable rates of inflation and government consumption, would indeed increase growth in EU. Taking advantage of the European integration, in terms of real convergence, institutions seem also quite essential ingredients.