DRIVERS OF LONG-TERM CONVERGENCE. FOCUS ON ROMANIA
With initial low levels of income per capita, a declining population and relatively modest economic growth rates, there are little prospects of diminishing the gap between Romania and the EU countries. Nevertheless, in the long term, convergence is expected. The question then arises, “What are the...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Nicolae Titulescu University
2014-11-01
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| Series: | Global Economic Observer |
| Subjects: | |
| Online Access: | http://www.globeco.ro/wp-content/uploads/vol/split/vol_2_no_2/geo_2014_vol2_no2_art_013.pdf |
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| Summary: | With initial low levels of income per capita, a declining population and relatively modest economic
growth rates, there are little prospects of diminishing the gap between Romania and the EU countries.
Nevertheless, in the long term, convergence is expected. The question then arises, “What are the drivers and
their likely potential to boost economic growth and the catching-up process?”.
This paper presents shortly the theoretical background of economic convergence and then focuses on the
assessment of possible paths of Romania’s convergence towards the EU. Based on the existing long-term
macroeconomic projections and the assessment of the possible future developments of the drivers of economic
growth, we have built three scenarios of economic convergence, highlighting the possible timespan of
convergence. We have employed growth accounting methods to decompose output growth rate into production
factors’ contributions (capital and labour) and total factor productivity. |
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| ISSN: | 2343-9742 2343-9750 |