Real Convergence in the Euro Area: Mirage or Reality?

Miron, Dumitru; Holobiuc, Ana-Maria; Cojocariu, Radu Cezar; Budacia, Andreea

doi:10.7441/joc.2022.01.06

Cited by 4 publications

(2 citation statements)

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“…It is interesting to note the strong connection between Italy and Japan and their detachment from the European cluster, which included Austria and Germany in the first period. This result seems consistent with the identification of divergent trends among the early adopters of the euro (e.g., Miron et al 2022). It is also interesting to see Cyprus slide into the C4 group in the second period.…”

Section: Cluster Dynamicssupporting

confidence: 87%

Exploring Global Economy Evolution: Clusters and Patterns

Casagrande,

Dallago

2024

Economies

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Economic integration and globalization are expected to promote economic growth and convergence. This article offers a comparative analysis of the pace of development in terms of GDP per capita in 79 economies from 1970 to 2019. Usually, economic convergence literature aims to establish whether catching-up processes have been successful. This article verifies the existence of growth path similarities to identify clusters of countries that grow at a similar pace and react in a similar way to crises, and compares their dynamics in time. According to the results, coherently with globalization pressures, clusters have become fewer and larger. However, growth path divergences persist and suggest a cluster-based convergence. Integration processes, such as the European Union, have not influenced this trend. The extent to which these clusters are composed of structurally similar economies has been investigated and some consistencies have emerged between the composition of clusters and the classifications provided by the varieties of capitalism theory.

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Section: Cluster Dynamicssupporting

confidence: 87%

Exploring Global Economy Evolution: Clusters and Patterns

Casagrande,

Dallago

2024

Economies

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“…The COVID-19 pandemic impacted the trends of convergence in the European Union countries [18], as well as the global financial crisis. Over the period 2000-2019, the European Union's average convergence speed was 2.5% and the Eurozone's was 2.3% [19]. These signs of convergence were visible in the Bulgarian regions, for instance [20].…”

Section: Literature Reviewmentioning

confidence: 95%

Evidence of Global Convergence: Perspectives for Economic and Territory Planning in Times of the COVID-19 Pandemic

Martinho

2023

Land

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Governments and international organizations have implemented efforts to promote the convergence of socioeconomic indicators between countries. The structural funds adopted by the European Union institutions are examples of policy instruments implemented to promote convergence in the GDP (gross domestic product) among the member states. Nonetheless, these policy measures are dependent on several internal and external factors, making these efforts vulnerable to exogenous shocks such as those associated with the global financial crisis and the COVID-19 pandemic. From this perspective, this research aims to analyze the convergence trends over the last few years and assess the respective implications of the pandemic on this framework. For that, statistical information from the World Bank for the GDP per capita was considered for the period 2006–2021 for all countries and organized for each group of levels of income and each world region. These data were analyzed through panel data approaches, considering the developments in convergence theory. The results show that the signs of convergence are different for each level of income and each region, highlighting the idea of clubs of convergence. On the other hand, the pandemic disturbed the trends of convergence verified worldwide, but nonetheless, it seems to be on a smaller scale than the global financial crisis. In any case, these findings should be confirmed in future research with more recent data.

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Income convergence clubs in the Eurozone: a tale beyond the core/periphery divide

García Solanes,

Beyaert,

Lopez-Gomez

2024

AEA

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Purpose This paper aims to examine income convergence among the Euro members from 1995 to 2021. Design/methodology/approach This study uses Phillips and Sul’s test (2007, 2009) extended by Lyncker and Thoennessen’s (2017) algorithm jointly with β and σ – convergence analysis and a traditional growth equation. Findings This analysis identifies three clubs of countries in terms of gross domestic product (GDP) per capita with notable disparities between and within them, which implies that the theory of optimal currency areas has not been fulfilled. Originality/value These results rule out the core/periphery divide as presented in the literature to date. Finally, by estimating an endogenous economic growth model, this study finds the primary factors underpinning the differences between the three stationary states: labor productivity, physical and human capital, investment and international trade.

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Real Convergence in the Euro Area: Mirage or Reality?

Cited by 4 publications

References 0 publications

Exploring Global Economy Evolution: Clusters and Patterns

Exploring Global Economy Evolution: Clusters and Patterns

Evidence of Global Convergence: Perspectives for Economic and Territory Planning in Times of the COVID-19 Pandemic

Income convergence clubs in the Eurozone: a tale beyond the core/periphery divide

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