Assessment Model of the Effect of Factors Determining Rates of the Economic Growth in Groups of European Union Converging Countries

Kristina Montvilaitė, Dovilė Ruplienė

Abstract


Identification and assessment of factors, determining rates of economic growth from the aspect of convergence offers factors contributing to ensuring the approach of the level of expansion of economics with the lower development to the level of more developed countries and to revealing possibilities for economics with different levels of development to converge.

The model for assessment of the effect of factors, determining rates of the economic growth in groups of converging European Union countries was formed. Upon identification of convergence clubs by neoclassical model of β absolute convergence in the European Union it was defined in what groups of countries the similarity of economics is happening. Importance of the direct foreign investments and the productivity of working factors on the growth rates of countries in the European Union as well as on the assurance of convergence process between economics with different development rate were substantiated.

Index Trems: economic growth, convergence, growth factors, economic growth model.


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2014-1-02

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