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Nominal and real convergence in the new EU Member States
| Content Provider | Semantic Scholar |
|---|---|
| Author | Halmai, Péter Vásáry, Viktória |
| Copyright Year | 2012 |
| Abstract | The advancement of nominal and real convergence in the process of EU adaptation is of special importance. The paper studies the main factors of convergence processes in details. It pays special attention to the analysis of potential growth processes Detailed quantitative analysis is carried out covering the last two decades. The paper uses the concepts of the growth theories in order to describe the real convergence processes. Sustainable convergence assumes that per capita potential growth rate of the less developed countries should exceed continously the indicator of developed countries. The financial and economic crisis of 2008 has resulted, however, in a fundmentally new situation as regards these issues. Since accession the new Member States have been following transition paths leading to substantial convergence. Yet the pace of this catch up will dwindle over time and may eventually stop assuming that there are no changes in the policies. After rapid initial convergence the EU-10 countries will increasingly constitute a stagnating "convergence club". The accession to the stability oriented EMU provides remarkable long term advantages for the NMSs. At the same time important new challenges need to be responded to also in the context of the catch up. The fulfilment of the nominal convergence criteria per se is not enough to ensure a robust long term economic performance in the monetary union. Therefore, the promotion of fiscal and structural policies is required also in the course of the euro-adoption. The basic condition for the real economic convergence is considered the approach among the structure of the economies that might be promoted also by transfers of the cohesion policy. Mid-term and long-term simulations imply the slow down of European convergence processes and the full stop of convergence in certain countries. All these are significant challenges for the European integration model (single market, Economic and Monetary Union.) JEL Classification: F43, F47, F15, O11, O47 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | http://real.mtak.hu/16079/1/Halmai_Vasary.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
