1. Convergence in Emerging Europe.
- Author
-
Vamvakidis, Athanasios
- Subjects
ECONOMIC conditions in Eastern Europe, 1989- ,FINANCIAL crises ,SUSTAINABLE development ,ECONOMIC convergence ,ECONOMIC development ,ECONOMIC trends ,COMMUNITY development ,ECONOMIC forecasting - Abstract
The emerging European economies have been converging rapidly toward the more advanced European economies in recent years. However, large external imbalances in parts of the region have raised questions about sustainability and concerns about vulnerabilities. Empirical evidence in this paper up to the end of 2007 and based on a number of methodologies suggests that the convergence trend of emerging Europe is based on strong fundamentals and is expected to continue, but at a slower pace. Moreover, the convergence path may be volatile, as countries with large external imbalances adjust, with risks of a hard landing in some cases. The results also suggest that policy could do more to address the region's imbalances. [ABSTRACT FROM AUTHOR]
- Published
- 2009
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