Integrated Business Faculty – Skopje, Macedonia and St. Clement of Ohrid University – Bitola, Macedonia
2nd International Scientific Conference – EMAN 2018 – Economics and Management: How to Cope With Disrupted Times, Ljubljana – Slovenia, March 22, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Management Koper, Slovenia; Doba Business School – Maribor, Slovenia; Integrated Business Faculty – Skopje, Macedonia; Faculty of Management – Zajecar, Serbia, ISBN 978-86-80194-11-0
This paper uses both – the augmented framework of the Solow growth model and the “determinants-of-growth” approach, to examine the convergence in standards of living among the Central, Eastern, and Southeastern European (CESEE) countries. The results of our exercise indicate that per capita incomes of CESEE countries converge to their steady-state levels at unexpectedly high rate of approximately 8% per year. In this regard, we provide some plausible explanations.
Economic convergence, CESEE countries, first-differenced GMM estimator
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