European Integration and Income Convergence : Lessons for Central and Eastern European Countries
The prospect of enlarging the European Union (EU) to Central and Eastern European countries with income levels far below those of present members, questions how, and when the candidates' aspiration to converge towards EU standards of living, c...
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| Format: | Publication |
| Language: | English en_US |
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Washington, DC: World Bank
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2001/08/1561428/european-integration-income-convergence-lessons-central-eastern-european-countries http://hdl.handle.net/10986/13968 |
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okr-10986-13968 |
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oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
EUROPEAN INTEGRATION EUROPEAN UNION CONVERGENCE (ECONOMICS) INCOME LEVELS EUROPEAN UNION MEMBERSHIP STANDARD OF LIVING REGIONAL INTEGRATION TECHNOLOGICAL CHANGE FOREIGN DIRECT INVESTMENTS MACROECONOMIC STABILITY COMPETITION POLICY HUMAN CAPITAL REGIONAL POLICY AVERAGE INCOME BASE YEAR CAPITAL ACCUMULATION CAPITAL INVESTMENTS CD COMMON TRADE POLICY CONVERGENCE HYPOTHESIS CONVERGENCE PROCESS CRITICAL SURVEY CROSS COUNTRY DIFFERENCES IN INCOME ECOLOGY ECONOMIC COMMUNITY ECONOMIC CONVERGENCE ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC REFORM ECONOMIC RESEARCH ECONOMIC WELFARE ECONOMICS EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT ENDOGENOUS GROWTH ENVIRONMENTAL PERFORMANCE EXCHANGE RATE EXCHANGE RATE FLUCTUATIONS EXCHANGE RATES EXPLANATORY FACTORS EXTERNALITIES FINANCIAL CRISES FIXED COSTS FOREIGN INVESTMENT FOREIGN TRADE FOREST MANAGEMENT FREE TRADE FREE TRADE AREA GDP GDP PER CAPITA GROSS FIXED CAPITAL FORMATION GROWTH LITERATURE GROWTH MODEL GROWTH MODELS GROWTH PERFORMANCE GROWTH THEORY HUMAN CAPITAL IMPORTING COUNTRY INCOME INCOME CONVERGENCE INCOME DISTRIBUTION INCOME DISTRIBUTION DATA INCOME DISTRIBUTIONS INCOME GAPS INCOME INEQUALITY INCOME LEVELS INCOMES INCREASING RETURNS INDUSTRIALIZED COUNTRIES INFANT INDUSTRY ARGUMENT INTEGRATING AREA INTEREST RATES INTERMEDIATE GOODS INTERNAL TRADE INTERNATIONAL TRADE INTERNATIONAL TRADE POLICY INVESTMENT INFLOWS KNOWLEDGE SPILLOVER LABOR PRODUCTIVITY LABOUR PRODUCTIVITY LEGAL STATUS LONG RUN MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARGINAL PRODUCT MEMBER COUNTRIES MEMBER STATES MONETARY UNION NATIONAL POLICIES NATIONAL] POLICIES NEOCLASSICAL GROWTH NEOCLASSICAL GROWTH MODEL NEOCLASSICAL GROWTH THEORY OPEN ECONOMIES PER CAPITA GROWTH PER CAPITA INCOME POOR COUNTRIES POSITIVE EXTERNALITIES POVERTY REDUCTION PREFERENTIAL TRADING PREFERENTIAL TRADING AGREEMENTS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC CAPITAL PURCHASING POWER RETURNS TO SCALE RISK PREMIUM STABILIZATION POLICIES STRUCTURAL CHANGE TECHNICAL PROGRESS TECHNOLOGICAL INNOVATION TECHNOLOGY SPILLOVERS TECHNOLOGY TRANSFER TRADE INTEGRATION TRADE LIBERALIZATION TRADE OPENNESS TRADE THEORY TRANSACTION COSTS TRANSITION ECONOMIES TRANSITION PROCESS TRANSPORT COSTS WATER PRICING WEALTH WELFARE EFFECTS WELFARE GAINS |
| spellingShingle |
EUROPEAN INTEGRATION EUROPEAN UNION CONVERGENCE (ECONOMICS) INCOME LEVELS EUROPEAN UNION MEMBERSHIP STANDARD OF LIVING REGIONAL INTEGRATION TECHNOLOGICAL CHANGE FOREIGN DIRECT INVESTMENTS MACROECONOMIC STABILITY COMPETITION POLICY HUMAN CAPITAL REGIONAL POLICY AVERAGE INCOME BASE YEAR CAPITAL ACCUMULATION CAPITAL INVESTMENTS CD COMMON TRADE POLICY CONVERGENCE HYPOTHESIS CONVERGENCE PROCESS CRITICAL SURVEY CROSS COUNTRY DIFFERENCES IN INCOME ECOLOGY ECONOMIC COMMUNITY ECONOMIC CONVERGENCE ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC REFORM ECONOMIC RESEARCH ECONOMIC WELFARE ECONOMICS EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT ENDOGENOUS GROWTH ENVIRONMENTAL PERFORMANCE EXCHANGE RATE EXCHANGE RATE FLUCTUATIONS EXCHANGE RATES EXPLANATORY FACTORS EXTERNALITIES FINANCIAL CRISES FIXED COSTS FOREIGN INVESTMENT FOREIGN TRADE FOREST MANAGEMENT FREE TRADE FREE TRADE AREA GDP GDP PER CAPITA GROSS FIXED CAPITAL FORMATION GROWTH LITERATURE GROWTH MODEL GROWTH MODELS GROWTH PERFORMANCE GROWTH THEORY HUMAN CAPITAL IMPORTING COUNTRY INCOME INCOME CONVERGENCE INCOME DISTRIBUTION INCOME DISTRIBUTION DATA INCOME DISTRIBUTIONS INCOME GAPS INCOME INEQUALITY INCOME LEVELS INCOMES INCREASING RETURNS INDUSTRIALIZED COUNTRIES INFANT INDUSTRY ARGUMENT INTEGRATING AREA INTEREST RATES INTERMEDIATE GOODS INTERNAL TRADE INTERNATIONAL TRADE INTERNATIONAL TRADE POLICY INVESTMENT INFLOWS KNOWLEDGE SPILLOVER LABOR PRODUCTIVITY LABOUR PRODUCTIVITY LEGAL STATUS LONG RUN MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARGINAL PRODUCT MEMBER COUNTRIES MEMBER STATES MONETARY UNION NATIONAL POLICIES NATIONAL] POLICIES NEOCLASSICAL GROWTH NEOCLASSICAL GROWTH MODEL NEOCLASSICAL GROWTH THEORY OPEN ECONOMIES PER CAPITA GROWTH PER CAPITA INCOME POOR COUNTRIES POSITIVE EXTERNALITIES POVERTY REDUCTION PREFERENTIAL TRADING PREFERENTIAL TRADING AGREEMENTS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC CAPITAL PURCHASING POWER RETURNS TO SCALE RISK PREMIUM STABILIZATION POLICIES STRUCTURAL CHANGE TECHNICAL PROGRESS TECHNOLOGICAL INNOVATION TECHNOLOGY SPILLOVERS TECHNOLOGY TRANSFER TRADE INTEGRATION TRADE LIBERALIZATION TRADE OPENNESS TRADE THEORY TRANSACTION COSTS TRANSITION ECONOMIES TRANSITION PROCESS TRANSPORT COSTS WATER PRICING WEALTH WELFARE EFFECTS WELFARE GAINS Martin, Carmela Velazquez, Francisco J. Funck, Bernard European Integration and Income Convergence : Lessons for Central and Eastern European Countries |
| geographic_facet |
Europe and Central Asia |
| relation |
World Bank Technical Paper;No. 514 |
| description |
The prospect of enlarging the European
Union (EU) to Central and Eastern European countries with
income levels far below those of present members, questions
how, and when the candidates' aspiration to converge
towards EU standards of living, could possibly by fulfilled.
To address these questions, this paper seeks to assess of
the convergence experience of the four less developed EU
members, i.e., Spain, Portugal, Ireland, and Greece, after
joining the EU, and, to explore what lessons can be learned
from that experience. The discussion suggests that, while
theoretically possible, there is little empirical reason to
fear that European integration would cause economies to
diverge. Rather than being spontaneous, however, real
convergence would seem to depend crucially, on the capacity
of countries to tap international technological spillovers,
particularly through foreign direct investment.
Macroeconomic stability, effective competition on goods, and
factor markets, and, a good human capital endowment are
essential to harness benefits. Nonetheless, lingering
worries about the possibility that integration would lead to
real divergence between countries, or regions of Europe, has
led to the creation of large transfers under the EU's
Regional Policy. Pending more conclusive evidence of their
effectiveness, the candidate countries would seem wise to
put greater store by those domestic policies, than by EU
grants to fuel their convergence. |
| format |
Publications & Research :: Publication |
| author |
Martin, Carmela Velazquez, Francisco J. Funck, Bernard |
| author_facet |
Martin, Carmela Velazquez, Francisco J. Funck, Bernard |
| author_sort |
Martin, Carmela |
| title |
European Integration and Income Convergence : Lessons for Central and Eastern European Countries |
| title_short |
European Integration and Income Convergence : Lessons for Central and Eastern European Countries |
| title_full |
European Integration and Income Convergence : Lessons for Central and Eastern European Countries |
| title_fullStr |
European Integration and Income Convergence : Lessons for Central and Eastern European Countries |
| title_full_unstemmed |
European Integration and Income Convergence : Lessons for Central and Eastern European Countries |
| title_sort |
european integration and income convergence : lessons for central and eastern european countries |
| publisher |
Washington, DC: World Bank |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2001/08/1561428/european-integration-income-convergence-lessons-central-eastern-european-countries http://hdl.handle.net/10986/13968 |
| _version_ |
1764424926194827264 |
| spelling |
okr-10986-139682021-04-23T14:03:10Z European Integration and Income Convergence : Lessons for Central and Eastern European Countries Martin, Carmela Velazquez, Francisco J. Funck, Bernard EUROPEAN INTEGRATION EUROPEAN UNION CONVERGENCE (ECONOMICS) INCOME LEVELS EUROPEAN UNION MEMBERSHIP STANDARD OF LIVING REGIONAL INTEGRATION TECHNOLOGICAL CHANGE FOREIGN DIRECT INVESTMENTS MACROECONOMIC STABILITY COMPETITION POLICY HUMAN CAPITAL REGIONAL POLICY AVERAGE INCOME BASE YEAR CAPITAL ACCUMULATION CAPITAL INVESTMENTS CD COMMON TRADE POLICY CONVERGENCE HYPOTHESIS CONVERGENCE PROCESS CRITICAL SURVEY CROSS COUNTRY DIFFERENCES IN INCOME ECOLOGY ECONOMIC COMMUNITY ECONOMIC CONVERGENCE ECONOMIC GROWTH ECONOMIC INTEGRATION ECONOMIC REFORM ECONOMIC RESEARCH ECONOMIC WELFARE ECONOMICS EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EMPIRICAL LITERATURE EMPIRICAL RESEARCH EMPIRICAL STUDIES EMPLOYMENT ENDOGENOUS GROWTH ENVIRONMENTAL PERFORMANCE EXCHANGE RATE EXCHANGE RATE FLUCTUATIONS EXCHANGE RATES EXPLANATORY FACTORS EXTERNALITIES FINANCIAL CRISES FIXED COSTS FOREIGN INVESTMENT FOREIGN TRADE FOREST MANAGEMENT FREE TRADE FREE TRADE AREA GDP GDP PER CAPITA GROSS FIXED CAPITAL FORMATION GROWTH LITERATURE GROWTH MODEL GROWTH MODELS GROWTH PERFORMANCE GROWTH THEORY HUMAN CAPITAL IMPORTING COUNTRY INCOME INCOME CONVERGENCE INCOME DISTRIBUTION INCOME DISTRIBUTION DATA INCOME DISTRIBUTIONS INCOME GAPS INCOME INEQUALITY INCOME LEVELS INCOMES INCREASING RETURNS INDUSTRIALIZED COUNTRIES INFANT INDUSTRY ARGUMENT INTEGRATING AREA INTEREST RATES INTERMEDIATE GOODS INTERNAL TRADE INTERNATIONAL TRADE INTERNATIONAL TRADE POLICY INVESTMENT INFLOWS KNOWLEDGE SPILLOVER LABOR PRODUCTIVITY LABOUR PRODUCTIVITY LEGAL STATUS LONG RUN MACROECONOMIC POLICIES MACROECONOMIC STABILITY MARGINAL PRODUCT MEMBER COUNTRIES MEMBER STATES MONETARY UNION NATIONAL POLICIES NATIONAL] POLICIES NEOCLASSICAL GROWTH NEOCLASSICAL GROWTH MODEL NEOCLASSICAL GROWTH THEORY OPEN ECONOMIES PER CAPITA GROWTH PER CAPITA INCOME POOR COUNTRIES POSITIVE EXTERNALITIES POVERTY REDUCTION PREFERENTIAL TRADING PREFERENTIAL TRADING AGREEMENTS PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC CAPITAL PURCHASING POWER RETURNS TO SCALE RISK PREMIUM STABILIZATION POLICIES STRUCTURAL CHANGE TECHNICAL PROGRESS TECHNOLOGICAL INNOVATION TECHNOLOGY SPILLOVERS TECHNOLOGY TRANSFER TRADE INTEGRATION TRADE LIBERALIZATION TRADE OPENNESS TRADE THEORY TRANSACTION COSTS TRANSITION ECONOMIES TRANSITION PROCESS TRANSPORT COSTS WATER PRICING WEALTH WELFARE EFFECTS WELFARE GAINS The prospect of enlarging the European Union (EU) to Central and Eastern European countries with income levels far below those of present members, questions how, and when the candidates' aspiration to converge towards EU standards of living, could possibly by fulfilled. To address these questions, this paper seeks to assess of the convergence experience of the four less developed EU members, i.e., Spain, Portugal, Ireland, and Greece, after joining the EU, and, to explore what lessons can be learned from that experience. The discussion suggests that, while theoretically possible, there is little empirical reason to fear that European integration would cause economies to diverge. Rather than being spontaneous, however, real convergence would seem to depend crucially, on the capacity of countries to tap international technological spillovers, particularly through foreign direct investment. Macroeconomic stability, effective competition on goods, and factor markets, and, a good human capital endowment are essential to harness benefits. Nonetheless, lingering worries about the possibility that integration would lead to real divergence between countries, or regions of Europe, has led to the creation of large transfers under the EU's Regional Policy. Pending more conclusive evidence of their effectiveness, the candidate countries would seem wise to put greater store by those domestic policies, than by EU grants to fuel their convergence. 2013-06-17T18:13:32Z 2013-06-17T18:13:32Z 2001-08 http://documents.worldbank.org/curated/en/2001/08/1561428/european-integration-income-convergence-lessons-central-eastern-european-countries 0-8213-4994-5 http://hdl.handle.net/10986/13968 English en_US World Bank Technical Paper;No. 514 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research :: Publication Publications & Research :: Publication Europe and Central Asia |