Evaluation of the Income Convergence Hypothesis in Ten New Members of the European Union. A Panel Unit Root Approach

  • Ranjpour Reza Univercité de Nice Sophia Antipolis, CEMAFI, Faculté de Droit, des Sciences Politiques, Économiques et de Gestion, France
  • Karimi Takanlou Zahra Univercité de Nice Sophia Antipolis, CEMAFI, France

Abstract

In this paper, different tests of unit root in panel data are implemented for studying real economic convergence and catching-up in ten new members of European Union (EU) toward average EU per capita income and average of ancient members. We used the "EuroStat" quarterly real per capita output data on the period 1995 - 2005. The results support existence of absolute convergence and catching-up processes in sample countries towards EU standards.


Key words: Growth, European Union, Convergence, Panel unit root, Catching-up.
JEL: C12, C33, O47, O52.

How to Cite
Reza R., & Zahra K.T. (2008). Evaluation of the Income Convergence Hypothesis in Ten New Members of the European Union. A Panel Unit Root Approach. Panoeconomicus, 55(2), 157-166. doi:10.2298/PAN0802157R
Section
Original scientific paper