The aim of this paper is to study the convergence patterns in the European Union and the Euro Area between 2000 and 2019 by means of the absolute and conditional β- and σ-convergence, considering cohesion not opposite but complementary to competitiveness. By estimating cross-sectional regressions, we have found evidence favouring the absolute β-convergence for the Eurozone (19) and the European Union, illustrating that the initially poorer members experienced higher GDP per capita growth rates than the developed economies. The average catching-up speed recorded between 2000 and 2019 in the European Union was 2.5%, while in the Eurozone (19), it was 2.3%. Based on panel data and seemingly unrelated regressions, we have illustrated that improvement in the competitiveness of Member States by promoting investment, trade openness, high levels of labour productivity, education and the implication of citizens in society positively influenced the GDP per capita growth rates between 2000 and 2019. Finally, the estimation of σ-convergence based on the standard deviation led us to conclude that income gaps narrowed across the European Union and the Eurozone (19) between 2000 and 2019, having, in contrast, an upward trend among the early adopters of the euro. The original elements of the paper derive from the comparative analysis of convergence in the Euro Area and the European Union and the study of the economic growth process from the perspective of competitiveness-related variables. In this respect, the study emphasizes the role of human capital in generating prosperity gains at the Community level.
15 December 2020 in European Financial and Accounting Journal
This article contributes to the discussion about the socioeconomic factors that reinforce pesticide dependence in the European Union and hinder the transition to more sustainable agricultural practices in light of the European Union’s Green Deal objective of reducing the use of pesticides by 50% by 2030. The analysis has a two-pronged purpose: (1) to identify the determinants of pesticide consumption in the European Union by conducting a set of four seemingly unrelated regressions and (2) to emphasize the existence of regional patterns across EU countries formed by the factors that significantly impact pesticide consumption based on a cluster analysis. Per capita GDP, selling prices, population, and real income positively influence pesticide use, whereas subsidies and organic agricultural area negatively influence them. Pesticide use is most affected by GDP per capita and least affected by subsidies. Cluster analysis highlights regional differences reflected in three clusters: (1) the most recent EU member states, (2) the European countries with large population levels, and (3) the countries with the highest GDP per capita. Our findings may contribute to the EU’s capacity to generate policy changes at the member state level and can be built into recommendations to address the persistent overuse of pesticides.
1 August 2022 in Proceedings of the International Conference on Business Excellence
Analysts have many arguments to underline that the European integration project, which celebrates in March 2022 65 years from the signing of the Treaties of Rome, has passed the test of time, proving its capacity to fulfill many of its strategic goals. However, in spite of the numerous achievements, one of the objectives that has been only partially accomplished aims the economic, social and territorial cohesion. The aim of this paper is to study the convergence patterns in the European Union between 1995 and 2020, taking into consideration the economic and social dimensions. In this respect, we have tried to determine if the European Union can assure prosperity, as reflected by GDP per capita and also to enhance the citizens’ welfare, as shown by households’ consumption expenditure and actual individual consumption per capita. To compare the main trends in this respect for the period 1995-2020, we have used β- convergence, while the degree of economic and social homogeneity in the European Union was examined by σ-convergence. Estimating cross-sectional regressions, we have found evidence in favor of β- convergence, as the initially less developed Members experienced higher GDP per capita growth rates than the developed ones. The hypothesis is also confirmed for the social indicators, illustrating that the citizens’ wellbeing has improved with a higher pace in the Central and Eastern group compared to the wealthy Western Europe. By determining σ-convergence based on the coefficient of variation, we have illustrated that income and wellbeing divergences generally had a downward trend between 1995 and 2019. However, the Covid-19 pandemic reversed the favorable trend and determined an increase of gaps, mainly in terms of GDP per capita.
The recent waves of enlargement of the European Union have created not only opportunities, but also challenges, emphasizing the complexity of the integration process and the difficulty to assure cohesion between Members. The aim of this paper is to examine real convergence in an enlarged European Union and to conduct a comparative analysis between the New (13) and the Old Members (15). In this respect, we have studied absolute and conditional convergence between 1995 and 2019, taking into consideration the level of GDP per capita. The methodological tools of the research were β-convergence based on cross-sectional and panel regressions and σ-convergence. The results of our study confirm the 2% law of convergence within the European Union between 1995 and 2019. However, the analysis of the economic performances among the New and Old Members led us to opposite results: while the catching-up speed among the New Member States reached on average 2.7%, in the Old Members we didn’t identify a statistically significant relationship between the initial income and the subsequent growth rates. In order to account for economic and social differences between the Member States, we have examined conditional convergence, illustrating the defining role of investment, trade and labor productivity in catalyzing convergence both in the New and Old Members. In contrast, the empirical study suggests that an increased level of public expenditures and over-indebtedness within the European Union threaten the catching-up process. The results of our paper can be useful for the European decision makers, illustrating the factors that might contribute to the achievement of the objective of real convergence within the European Union. Keywords: real convergence, European Union, New Member States, β-convergence, σ-convergence.