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TESTING FOR FISCAL CONVERGENCE IN THE EU COUNTRIES

Oana Popovici and Adrian Cantemir Calin

Internal Auditing and Risk Management, 2016, vol. 43, issue 1, 62-73

Abstract: This paper tests for the presence of fiscal convergence in 27 EU countries during 1995-2012. We use the methodology proposed for ß convergence in order to check for similarities and divergences between the old and the new EU member states as regards the convergence speed. We are also interested if the pace of convergence was maintained during the whole period or if there are differences between the years 1990s and 2000s. The panel data model is used in order to analyse the convergence on groups of countries and time periods. The results point to the existence of the fiscal convergence process in both the old and the new EU member states, but with major differences depending on the period analysed

Keywords: fiscal convergence; ß convergence; panel data; European Union (search for similar items in EconPapers)
JEL-codes: C23 E62 O47 (search for similar items in EconPapers)
Date: 2016
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