Prague Economic Papers 2005, 14(3):239-251 | DOI: 10.18267/j.pep.264

Determinants of Growth and Convergence in Transitive Economies in the 1990s: Empirical Evidence from a Panel Data

Menbere T. Workie
City University (Bellevue, USA), European Programs, Panonska cesta 17, 851 04 Bratislava and Institute of Slovak and World Economy, Slovak Academy of Sciences, Sancova 56, 811 05, Bratislava (e-mail: menberew2000@yahoo.com).

This paper empirically examines the determinants of economic growth and convergence in transitive economies of Central and Eastern Europe in the 1990s. While the cross-section regression suggests the absence of a significant convergence across the EU15 and other transitive economies, the Visegrad four (Slovakia, the Czech Republic, Hungary and Poland) dummy being positive and significant indicates that this group of countries has done relatively better than the other group of transitive economies. Moreover, the results indicate that there was an income per capita convergence within Visegrad countries. Switching to a panel data approach, and controlling for macroeconomic stability, financial development, human and physical capital accumulations and other policy variables, the results seem to suggest that there was a conditional convergence across EU15 and transitive economies in the 1990s.

Keywords: economic growth, transitive economies, convergence, panel data
JEL classification: C13, C31, C33

Published: January 1, 2005  Show citation

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Workie, M.T. (2005). Determinants of Growth and Convergence in Transitive Economies in the 1990s: Empirical Evidence from a Panel Data. Prague Economic Papers, 14(3), 239-251. doi: 10.18267/j.pep.264
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