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

Kristina Montvilaitė, Dovilė Ruplienė


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.

Full Text:



Abramovitz, M., David, P. A. (1996). Convergence and Deferred Catch-up: Productivity Leadership and the Waning of American Exceptionalism. Mosaic of Economic Growth, Stanford University Press, Stanford (CA).

Ahmad, N. (2008). Corrupt Clubs and the Convergence Hypothesis. Journal of Economic Policy Reform. Vol. 11, No. 1. p. 21–28.

Aiginger, K. (2003). Insufficient Investment into Future Growth: the Forgotten Cause of Low Growth in Germany. Working paper 0314.

Aiginger, K., Falk, M. (2005). Explaining Differences in Economic Growth Among OECD Countries. Empirica 32. p. 19–43.

Alcala, F., Ciccone, A. (2004). Trade and Productivity. Quarterly Journal of Economics. Vol. 119. No. 2. p. 613–46.

Alfaro, L. (2003). Foreign Direct Investment and Growth: Does the Sector Matter? Boston: Harward Business School.

Andreopoulos, G. C. (2009). Growth and Changes in Economic Structure: a Straightforward Statistical Approach with an Application to the Italian Economy. Cambridge Journal of Economics. Vol. 33. p. 421–432.

Awokuse, T. O. (2003). Is the Export-led Growth Hypothesis Valid for Canada? Canadian. Journal of Economics. Vol. 36. No. 1. p. 126–36.

Awokuse, T. O. (2007). Causality Between Exports, Imports, and Economic Growth: Evidence from Transition Economies. Economics Letters. Vol. 94. No. 3. p. 389–395.

Baharumshah, A., Thanoon, M. (2006). Foreign Capital Flows and Economic Growth in East Asian Countries. China Economic Rewiew. Vol. 17. p. 70-83.

Bassanini, A., Scarpetta, S. (2001). The Driving Forces of Economic Growth: Panel Data Evidence for the OECD Countries. OECD Economic Studies. Vol. 33. p. 9–56.

Berthelemy, J., Demurger, S. (2000). Foreign Direct Investment and Economic Growth: Theory and Aplication to China. Rewiew of Development Economists. Vol. 4. No. 2. p. 140-155.

Bhaduri, A. (2006). Endogenous Economic Growth: a New Approach. Cambridge Journal of Economics. Vol. 30. p. 69–83.

Bond, S., Leblebicioglu, A., Schiantarelli, F. (2010). Capital Accumulation and Growth: a New Look at the Empirical Evidence. Journal of Applied Econometrics. Vol. 25. p. 1073-1099.

Busse, M., Groizard, J. L. (2006). FDI, Regulation and Growth. HWWA Discussion paper No. 342.

Butkus, M. (2012). Regionų konvergencijos vertinimas ES šalyse nacionalinės ekonomikos išsivystymo lygio ir ekonominių pokyčių kontekste. Daktaro disertacija. Vytauto Didžiojo universitetas. Kaunas.

Caminada, K., Goudswaard, K., Vliet, O. V. (2010). Patterns of Welfare State Indicators in the EU: Is there Convergence? Journal of Common Market Studies. Vol. 48. No. 3 p. 529 – 556.

Capolupo, R. (1998). Convergence in Recent Growth Theories: a Survey. Journal of Economic Studies. Vol. 25. No. 6. p. 496-537.

Carkovic, M., Levine, L. (2002). Does Foreign Direct Investment Accelerate Economic Growth? University of Minnesota.

Chen, X., Funke, M. (2012). The Dynamics of Catch-up and Skill and Technology Upgrading in China. BOFIT Discussion Papers, 13.

Chen. B. L. (2006). Economic Growth With an Optimal Public Spending Composition. Oxford Economic Papers. Vol. 58. p. 123–136.

Cornett, A. P. (2005). Economic Integration in a Cross Border Perspective: An Emerging New System of Production? 45rd European Congress of the Regional Science Association Amsterdam, The Netherlands, August.

Cuaresma, J. C., Havettova, M., Labaj, M. (2012). Income Convergence Prospects in Europe: Assessing the Role of Human capital Dynamics. Department of Economics Working Paper. No. 143. p. 1-18.

Čegytė, O., Miečinskienė, A. (2009). Tiesioginių užsienio investicijų poveikio tyrimas. Mokslas – Lietuvos ateitis. 1 tomas. Nr. 3. p. 9-12.

Čiburiene, J. (2010). Relation of foreign direct investment with the stage of country economic: Lithuanian case. Ekonomika ir vadyba. Nr. 15. p. 39-46.

de la Fuente, A. and Dome´nech, R. (2000). Human Capital in Growth Regressions: How much Difference does Data Quality Make? Mimeo, Universidad Auto´noma de Barce´ - lona, January.

Dollar, D., Kraay, A. (2003). Institutions, Trade, and Growth. Journal of Monetary Economics. Vol. 50. No. 1. p. 133–62.

Dollar, D., Kraay, A. (2004). Trade, Growth, and Poverty. Economic Journal. Vol. 114. No. 493. p. 42–49.

Dowrick, S., Rogers, M. (2002). Classical and Technological Convergence: Beyond the Solow-Swan Groth Model. Oxford Economic Papers. Vol. 54. p. 369–385.

Dufrenot. G., Mignon, V., Naccache, T. (2011). Testing Catching-up Between The Developing Countries: „Growth Resistance“ And Sometimes „Growth Tragedy“. Bulletin of Economic Research. p. 1- 40.

Felbermayr, G. J. (2005). Dynamic Panel Data Evidence on the Trade–Income Relation. Review of World Economics. Vol. 141. No. 4. p. 583–611.

Geroski, P., Gugler, K. (2004). Corporate Growth Convergence in Europe. Oxford Economic Papers. Vol. 56.p. 597-620.

Gundlach, E. (2007). The Solow Model in the Empirics of Growth and Trade. Oxford Review of Economic Policy. Vol. 23. No. 1. p. 25–44.

Hall, B. J., Ludwig, U. (2006). Economic Convergence Across German Regions in Light of Empirical Findings. Cambridge Journal of Economics. Vol. 30. p. 941-953.

Hall, R., Jones, C. (1999). Why do Some Countries Produce so Much More Output per Worker than Others? Quarterly Journal of Economics. Vol. 114. p. 83–116.

Harris, R. (2011). Models Of Regional Growth: Past, Present And Future. Journal of Economic Surveys. Vol. 25. No. 5. p. 913–951.

Herrerias, M. J., Vicente, O. (2011). The Driving Forces Behind China’s Growth. Economics of Transition. Vol. 19. No. 1. p.79–124.

Irwin, D. A., Tervio, M. (2002). Does Trade Raise Income? Evidence from the Twentieth Century. Journal of International Economics. Vol. 58. No. 1. p. 1–18.

Johnson, A. (2005). The Effects of FDI Inflows on Host Country Economic Growth. Working Paper in Economics and Institutions of Innovation. No. 58. Royal Institute of Technology, Sweden.

Jorgenson, D., Fraumeni, B. (1992). Investment in Education and U. S. Economic Growth. Scandinavian Journal of Economics. Vol. 94. p. 51–70.

Klenow, P., Rodriquez-Clare, A. (1997). The Neoclassical Revival in Growth Economics: Has it Gone too far? NBER Macroeconomics Annual. p. 73–103.

Lane, P. R. (2001). International Trade and Economic Convergence: The Credit Channel. Oxford Economic Papers. Vol. 53. No. 2. p. 221–40.

Lau Chi-Keung, Marco. (2009). New Evidences about Convergence Across States. International Research Journal of Finance and Economics. Issue 27.

Lee, H. Y., Ricci, L. A., Rigobon, R. (2004). Once Again, Is Openness Good for Growth?. Journal of Development Economics. Vol. 75. No. 2. p. 451–72.

Maniokas, K. (2003). Europos Sąjungos plėtra ir Europeizacija. Vilnius: Eugrimas.

Martin, R. (2001). EMU Versus the Regions? Regional Convergence and Divergence in Euroland. Journal of Economic Geography. Vol. 1. p. 51-80.

McQuinn, K., Whelan, K. (2007). Solow (1956) as a Model of Cross-Country Growth Dynamics. Oxford Review of Economic Policy. Vol. 23. No. 1. p. 45–62.

Metcalfe, S. J., Foster, J., Ramlogan, R. (2006). Adaptive Economic Growth. Cambridge Journal of Economics. Vol. 30. p. 7–32.

Nair-Reichert, U., Weinhold, D. (2001). Causality Tests for Cross-Country Panels: a New Look at FDI and Economic Growth in Developing Countries. Oxford Bulletin of Economics and Statistics. Vol. 63. No. 2. p. 153-171.

Phillips, P. C. B., Sul, D. (2009). Economic Transition and Growth. Journal of Applied Econometrics. Vol. 24. p. 1153-1185.

Rodriguez, F., Rodrik, D. (2001). Trade Policy and Economic Growth: A Skeptic's Guide to the Cross-National Evidence // NBER/Macroeconomics Annual. Vol. 15. Issue 1. p. 261- 338.

Rudckienė, V., Burinskienė, M. (2007). Plėtros krypčių vertinimo ir valdymo informaciniai modeliai. Monografia. Vilniaus gedimino technikos universitetas. Vilnius.

Sachs, J. D., Warner, A. M. (1995). Economic Convergence and Economic Policies. NBER Working paper series. No. 5039.

Šeputienė, J. (2009). Institucinės aplinkos poveikio ekonomikai vertinimas. Daktaro disertacija. Vilniaus Gedimino technikos universitetas, Vilnius.

Teles, V. K. (2007). Institutional Quality and Endogenous Economic Growth. Journal of Economic Studies. Vol. 34. No. 1. p. 29-41.

Timmer, M. P., O’Mahony, M., Ark, B. (2007). EU KLEMS Growth and Productivity Accounts: An Overview.

Tsionas, E. G. (2000). Productivity convergence in Europe. Eastern Economic Journal. Vol. 7. No. 1.

Ugurlu, E. (2010). Growth and Openness Realationship in the EU-15: Panel Data Analysis. Ekonomika, Vol. 89. No. 2. p. 44-54.

Unit, G., Mustafa, Y. (2007). The Effect of FDI on Economic Growth: a Panel Data Evidence for Developing Counturies. Journal of Academic Studies. Vol. 34. p. 1-13.

Vamvakidis, A. (2002). How Robust is the Growth–Openness Connection? Historical Evidence. Journal of Economic Growth. Vol. 7. No. 1. p. 57–80.

Varblane, U., Vahter, P. (2005). An Analysis of the Economic Convergence Process in the Transition Countries. Tartu: University of Tartu.

Vetlov, I. (2003). Baltijos šalių ekonomikos augimo apskaita. Pinigų studijos 3.

Živko, T. (2006). The Economic-Cultural Context the EU Economies. Kybernetes. Vol. 35. No. 7 / 8. p. 1024-1036.


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

ISSN 1313-4787 (Print)
ISSN 2367-5403(Online)