Economic Growth as a Factor for Price Convergence in EU Countries

Vasil Bozev and Valentin Bilyanski
Additional contact information
Vasil Bozev: University of National and World Economy, Sofia, Bulgaria
Valentin Bilyanski: University of National and World Economy, Sofia, Bulgaria

Ikonomiceski i Sotsialni Alternativi, 2021, issue 1, 75-95

Abstract: The article examines the impact of economic growth on the general price level in different countries and that in individual product groups. On this basis, it becomes possible to derive some features of the price convergence process in EU countries for the 1996-2019 period. Emphasis is placed on trends in price levels in Bulgaria, with a special place given to products with administratively set prices and those in which excise duties form a large share of the price. This aims to highlight the direct role of the state in the price convergence of these product groups. The theoretical basis of the study is the Balassa-Samuelson model. The empirical study of the relationship between economic growth and price levels is carried out through regression analysis and panel regressions, with the latter analyzing the change in the strength of the relationship over time and the country-specific characteristics of this relation.

Keywords: economic growth; price levels; price convergence; new member states; old member states (search for similar items in EconPapers)
JEL-codes: E31 F36 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.unwe.bg/doi/alternativi/2021.1/ISA.2021.1.06.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nwe:iisabg:y:2021:i:1:p:75-95

Access Statistics for this article

More articles in Ikonomiceski i Sotsialni Alternativi from University of National and World Economy, Sofia, Bulgaria Contact information at EDIRC.
Bibliographic data for series maintained by Vanya Lazarova ().