Accession Trajectories and Convergence: Endogenous Growth Perspective

CERGE-EI Working Paper No. 219

Posted: 25 Apr 2005

See all articles by Michal Kejak

Michal Kejak

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

Stephan Seiter

University of Hohenheim

David Vavra

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

Date Written: February 2004

Abstract

In this paper we analyze qualitatively and quantitatively the potential effect of the EU accession on the development of several Central and Eastern European (CEE)countries (specifically, the Czech Republic, Hungary, and Poland). To achieve the task we design a small open economy version of the two-sector endogenous growth model of the Uzawa-Lucas style with knowledge diffusion. The model is first calibrated and validated to stylized facts of the economic development during the accession process in the EU periphery countries. We then calibrate the model according to the data on the CEE countries above and simulate their behavior using alternative scenarios in several dimensions. The interplay of various initial conditions and the parameters of the accession generate different accession patterns and also rather different speeds of convergence to the EU average. The model outcomes do not only provide us with these quantitative estimates but also improve our understanding of the economic mechanisms, which underpin those transitions.

Keywords: Two-Sector Growth Models, Economic Growth and Aggregate Productivity, Macroe-conomic Analysis of Economic Development, Human Resources, Human Capital Formation

JEL Classification: O41, O40, O11, O15, J24

Suggested Citation

Kejak, Michal and Seiter, Stephan and Vavra, David, Accession Trajectories and Convergence: Endogenous Growth Perspective (February 2004). CERGE-EI Working Paper No. 219, Available at SSRN: https://ssrn.com/abstract=706321

Michal Kejak (Contact Author)

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )

Politickych veznu 7
Prague 1, 111 21
Czech Republic

HOME PAGE: http://www.cerge-ei.cz

Stephan Seiter

University of Hohenheim ( email )

Fruwirthstr. 48
Stuttgart, 70599
Germany

David Vavra

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )

Politickych veznu 7
Prague 1, 111 21
Czech Republic
+420/2/2400-5111 (Phone)
+420/2/2422-7143 (Fax)

HOME PAGE: http://www.cerge-ei.cz

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