Economic Convergence within the CEE and towards the EU
The paper presents the analysis of economic convergence among 8 countries of CEE (new entrants to the EU) and the EU-15. The equalisation of income levels is measured by 'b' and 's' coefficients while the synchronisation of cyclical movements is analysed by the changes in the industrial production index and industrial confidence indicator based on survey data. The analysis covers the period 1993-2003. CEE countries reveal a marked convergence with the European Union, both as regards income levels and cyclical fluctuation. The CEE countries also show some convergence between themselves, particularly within the three subregional groups.Trade and capital links between the CEE countries and the EU have been already very strong. Therefore, we should not expect a significant acceleration of economic convergence just after their EU-accession. As compared with the other studies by now, this analysis shows a much stronger economic convergence between CEE and EU.
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