Economic Growth and Development of the Concept of Convergence – Theoretical Basis
Economic Growth and Development of the Concept of Convergence – Theoretical Basis

Summary/Abstract: The aim of the study is to outline the theoretical foundations of the concept of convergence related to economic growth, as well as to systematise the different types of convergence. The development of the concept of convergence, which is a result of many applied researches worldwide on the connection between growth and convergence, has been theoretically traced. The specifics of neoclassical and endogenous theories of economic growth are briefly presented as the basis of the concept of convergence, including its types – alpha (absolute), beta (relative), “club” and sigma convergence. The types of convergence that appeared in these studies are critically analysed – structural, based on labour productivity, regional, price, monetary, business cycle, and others. For EU countries, the interaction between nominal and real convergence has been studied.

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