Structural Convergence of the Central and Eastern European Countries: Achivements in the Last Decade

The paper studies the structural convergence of the Central and Eastern European countries (CEECs) with the Euro area, in order to determine whether the last decade led an increase or a decrease of the gaps between these two regions. The main findings of the paper indicate that only three CEECs out of ten reached a higher level of structural convergence with the Euro area in the last decade, namely Latvia, Bulgaria and Slovenia. Romania remains by far the country with the highest level of structural divergence. The analysis is based on cluster methodology and the structural divergence index developed by Krugman (2001).structural convergence, Central and Eastern Europe, Euro area, clusters

Does economic convergence with the European Union mean more FDI flows to an economy? Analysis on 5 Central and Eastern Europe countries

In this paper we analyze the relationship between economic convergence with the European Union (EU) and foreign direct investment flows to 5 EU countries (Bulgaria, Czech Republic, Poland, Romania and Hungary) in the period 2001 – 2010, in order to determine if the process of economic convergence with the EU level influences FDI inflows in these economies. We use an economic convergence index, made up of real and structural convergence indexes, to assess the level of economic convergence. The study does not provide us with a clear response to our question. We report a tight relationship between convergence index and FDI inflows in Bulgaria, but quite divergent evolutions of the two variables in the case of Hungary.convergence index; foreign direct investments; European Union

Eyes on Romania: what to look when investing here?

In this paper we identify a framework of the main macroeconomic indicators an investor must look when investing in a country, depending on his activity business sector. Using a qualitative method of research on the Romanian case in period of 2000-2010, we establish that a series of leading indicators, as Gross Domestic Product (GDP) growth rate, inflation rate and industrial production, are appropriate to get a brief snapshot of the economic outlook of a country. The following period, since 2011 to 2014, confirm our results. Beside the traditional indicators, we set as significant the degree of business cycles synchronization with the European Union (EU) in order to predict the next path of the Romanian economy. We use a structural divergence index for assessing the similarity of economic structure between Romania and EU. The results of this study confirm that Romania lags behind EU, offering the possibility to decide the next step of an investor’s business strategy.foreign direct investment; leading indicators; business cycles synchronization

Laggards or performers? CEE vs. PIIGS countries’ catch-up with the Euro area in the last ten years

This research paper develops a comparative analysis between the new members states of the European Union (EU) – from Central and Eastern Europe (CEE) – and PIIGS countries (Portugal, Italy, Ireland, Greece and Spain) in terms of economic convergence with the Euro area, in the last decade. In addition, the paper emphasizes the changes in the economic convergence levels determined by the recent international crisis. In order to assess these evolutions, we compute an aggregated index of economic convergence, made up of real and structural convergence indexes. Then, by using cluster methodology, we highlight the similarities between the states in the two groups, CEE and PIIGS, from the economic convergence perspective. The comparative analysis reveals that in 2010 only Estonia, Hungary and Slovenia report resembling characteristics to PIIGS group. We also report an important progress of the countries analyzed, as regards real and structural convergence with the Euro area. However, after a decade of catching-up, Romania remains by far the most distanced country from the Euro area.real convergence, structural convergence, Central and Eastern Europe, PIIGS, clusterization

Structural Convergence of the Central and Eastern European Countries: Achivements in the Last Decade

The paper studies the structural convergence of the Central and Eastern European countries (CEECs) with the Euro area, in order to determine whether the last decade led an increase or a decrease of the gaps between these two regions. The main findings of the paper indicate that only three CEECs out of ten reached a higher level of structural convergence with the Euro area in the last decade, namely Latvia, Bulgaria and Slovenia. Romania remains by far the country with the highest level of structural divergence. The analysis is based on cluster methodology and the structural divergence index developed by Krugman (2001)

Structural Convergence of the Central and Eastern European Countries: Achivements in the Last Decade

The paper studies the structural convergence of the Central and Eastern European countries (CEECs) with the Euro area, in order to determine whether the last decade led an increase or a decrease of the gaps between these two regions. The main findings of the paper indicate that only three CEECs out of ten reached a higher level of structural convergence with the Euro area in the last decade, namely Latvia, Bulgaria and Slovenia. Romania remains by far the country with the highest level of structural divergence. The analysis is based on cluster methodology and the structural divergence index developed by Krugman (2001)

Does economic convergence with the European Union mean more FDI flows to an economy? Analysis on 5 Central and Eastern Europe countries

In this paper we analyze the relationship between economic convergence with the European Union (EU) and foreign direct investment flows to 5 EU countries (Bulgaria, Czech Republic, Poland, Romania and Hungary) in the period 2001 – 2010, in order to determine if the process of economic convergence with the EU level influences FDI inflows in these economies. We use an economic convergence index, made up of real and structural convergence indexes, to assess the level of economic convergence. The study does not provide us with a clear response to our question. We report a tight relationship between convergence index and FDI inflows in Bulgaria, but quite divergent evolutions of the two variables in the case of Hungary

Eyes on Romania: what to look when investing here?

In this paper we identify a framework of the main macroeconomic indicators an investor must look when investing in a country, depending on his activity business sector. Using a qualitative method of research on the Romanian case in period of 2000-2010, we establish that a series of leading indicators, as Gross Domestic Product (GDP) growth rate, inflation rate and industrial production, are appropriate to get a brief snapshot of the economic outlook of a country. The following period, since 2011 to 2014, confirm our results. Beside the traditional indicators, we set as significant the degree of business cycles synchronization with the European Union (EU) in order to predict the next path of the Romanian economy. We use a structural divergence index for assessing the similarity of economic structure between Romania and EU. The results of this study confirm that Romania lags behind EU, offering the possibility to decide the next step of an investor’s business strategy

Laggards or performers? CEE vs. PIIGS countries’ catch-up with the Euro area in the last ten years

This research paper develops a comparative analysis between the new members states of the European Union (EU) – from Central and Eastern Europe (CEE) – and PIIGS countries (Portugal, Italy, Ireland, Greece and Spain) in terms of economic convergence with the Euro area, in the last decade. In addition, the paper emphasizes the changes in the economic convergence levels determined by the recent international crisis. In order to assess these evolutions, we compute an aggregated index of economic convergence, made up of real and structural convergence indexes. Then, by using cluster methodology, we highlight the similarities between the states in the two groups, CEE and PIIGS, from the economic convergence perspective. The comparative analysis reveals that in 2010 only Estonia, Hungary and Slovenia report resembling characteristics to PIIGS group. We also report an important progress of the countries analyzed, as regards real and structural convergence with the Euro area. However, after a decade of catching-up, Romania remains by far the most distanced country from the Euro area

Eyes on Romania: what to look when investing here?

In this paper we identify a framework of the main macroeconomic indicators an investor must look when investing in a country, depending on his activity business sector. Using a qualitative method of research on the Romanian case in period of 2000-2010, we establish that a series of leading indicators, as Gross Domestic Product (GDP) growth rate, inflation rate and industrial production, are appropriate to get a brief snapshot of the economic outlook of a country. The following period, since 2011 to 2014, confirm our results. Beside the traditional indicators, we set as significant the degree of business cycles synchronization with the European Union (EU) in order to predict the next path of the Romanian economy. We use a structural divergence index for assessing the similarity of economic structure between Romania and EU. The results of this study confirm that Romania lags behind EU, offering the possibility to decide the next step of an investor’s business strategy