Convergence and Transition of the Eastern Partnership Countries towards the European Union

Objective: This article aims to present the convergence analysis results for the Eastern Partnership EaP countries and the twenty-eight members of the European Union (EU). Research Design & Methods: The relationships between the selected macroeconomic variables and...

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Main Authors: Dzenita Siljak, Sándor Gyula Nagy
Format: Article
Language:English
Published: Cracow University of Economics 2019-06-01
Series:Entrepreneurial Business and Economics Review
Subjects:
Online Access:https://eber.uek.krakow.pl/eber/article/view/528
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author Dzenita Siljak
Sándor Gyula Nagy
author_facet Dzenita Siljak
Sándor Gyula Nagy
author_sort Dzenita Siljak
collection DOAJ
description Objective: This article aims to present the convergence analysis results for the Eastern Partnership EaP countries and the twenty-eight members of the European Union (EU). Research Design & Methods: The relationships between the selected macroeconomic variables and per capita GDP growth rate are econometrically tested to support this research. We analyse the convergence during the period of 2004-2017, but also include two sub-periods: 2004-2008 and 2009-2013. Findings: The empirical findings support the economic convergence hypothesis. The results show that the recent financial crisis negatively affected the absolute and conditional convergence process, when economic variables are included in the analysis. The negative effects of the crisis on conditional convergence with economic and socio-political variables are not identified. Implications & Recommendations: Poorer countries in the analysed group should do more to open their economies to attract investment, as gross fixed capital formation and economic openness have a positive impact on per capita growth, while general government debt, unemployment and inflation should be stabilised in the examined sample of countries. Contribution & Value Added: The contribution of this article is reflected in the fact that it examines a geographic and economic area that has been under examined. The analyses on the Eastern Partnership countries convergence process towards the European Union are almost nonexistent. Economic literature on convergence has focused on the EU Member States, while the analyses on the Eastern Partnership countries convergence process towards the EU are almost nonexistent.        
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spelling doaj-art-69f2641a07ba4fb8bd4dc8b6aa30193e2025-08-20T02:58:36ZengCracow University of EconomicsEntrepreneurial Business and Economics Review2353-88212019-06-017310.15678/EBER.2019.070312Convergence and Transition of the Eastern Partnership Countries towards the European UnionDzenita Siljak0Sándor Gyula Nagy1Institute for Foreign Affairs and TradeInstitute for Foreign Affairs and Trade Objective: This article aims to present the convergence analysis results for the Eastern Partnership EaP countries and the twenty-eight members of the European Union (EU). Research Design & Methods: The relationships between the selected macroeconomic variables and per capita GDP growth rate are econometrically tested to support this research. We analyse the convergence during the period of 2004-2017, but also include two sub-periods: 2004-2008 and 2009-2013. Findings: The empirical findings support the economic convergence hypothesis. The results show that the recent financial crisis negatively affected the absolute and conditional convergence process, when economic variables are included in the analysis. The negative effects of the crisis on conditional convergence with economic and socio-political variables are not identified. Implications & Recommendations: Poorer countries in the analysed group should do more to open their economies to attract investment, as gross fixed capital formation and economic openness have a positive impact on per capita growth, while general government debt, unemployment and inflation should be stabilised in the examined sample of countries. Contribution & Value Added: The contribution of this article is reflected in the fact that it examines a geographic and economic area that has been under examined. The analyses on the Eastern Partnership countries convergence process towards the European Union are almost nonexistent. Economic literature on convergence has focused on the EU Member States, while the analyses on the Eastern Partnership countries convergence process towards the EU are almost nonexistent.         https://eber.uek.krakow.pl/eber/article/view/528beta convergenceEastern PartnershipEuropean Uniontransitionfinancial crisiseconomic growth
spellingShingle Dzenita Siljak
Sándor Gyula Nagy
Convergence and Transition of the Eastern Partnership Countries towards the European Union
Entrepreneurial Business and Economics Review
beta convergence
Eastern Partnership
European Union
transition
financial crisis
economic growth
title Convergence and Transition of the Eastern Partnership Countries towards the European Union
title_full Convergence and Transition of the Eastern Partnership Countries towards the European Union
title_fullStr Convergence and Transition of the Eastern Partnership Countries towards the European Union
title_full_unstemmed Convergence and Transition of the Eastern Partnership Countries towards the European Union
title_short Convergence and Transition of the Eastern Partnership Countries towards the European Union
title_sort convergence and transition of the eastern partnership countries towards the european union
topic beta convergence
Eastern Partnership
European Union
transition
financial crisis
economic growth
url https://eber.uek.krakow.pl/eber/article/view/528
work_keys_str_mv AT dzenitasiljak convergenceandtransitionoftheeasternpartnershipcountriestowardstheeuropeanunion
AT sandorgyulanagy convergenceandtransitionoftheeasternpartnershipcountriestowardstheeuropeanunion