Dual-model approach to measuring convergence sustainability in the visegrad group
Dual-model approach to measuring convergence sustainability in the visegrad group

Summary/Abstract: Economic convergence has become a European research topic of interest during recentdecades, particularly since new member countries joined the EU in 2004. Measuringcross-country convergence focuses on real convergence, taking per capita incomeas a measure of living standards based on the convergence criteria defined by Sala-i-Martin(1996). The objective of this paper is to bring together supply-side (real convergence)and demand-side (BoP-constrained approach) concepts of economic growth aimed atidentification of convergence sources in the emerging economies of the Visegrad Group.The sustainability of convergence in this study utilizes the BoP-constrained growth theorydeveloped by A. Thirlwall (1979). Our results show that all the countries in the VisegradGroup exhibit relatively instant convergence, which could continue considering the intensityand direction of structural changes that affect the export demand elasticities andlabour productivity.

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