EconPapers    
Economics at your fingertips  
 

The Distribution Dynamics of Income in Central and Eastern Europe relative to the EU: A Nonparametric Analysis

Nikolay Nenovsky () and Kiril Tochkov ()

No wp1063, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: After more than two decades of transition and integration, countries in Central and Eastern Europe (CEE) still exhibit income levels that are significantly lower than the European Union (EU) average. This paper examines convergence in per-capita GDP between CEE and the EU over the period 1990-2012 by employing a combination of parametric and nonparametric methods, which provide more detailed insights than previous studies. The results indicate that the first decade of transition has been marked by divergence from the EU benchmark. In contrast, CEE countries experienced strong convergence over the 2000s, even in the face of the global financial crisis. However, the distribution of relative income evolved from a unimodal to a multimodal one, revealing growing disparities within CEE. Human capital accumulation and progress in economic reforms are identified as the key determinants of convergence, while financial deepening and price instability had a negative effect, especially in the past decade.

Keywords: income convergence; nonparametric methods; European Union; Central and Eastern Europe (search for similar items in EconPapers)
JEL-codes: O47 O57 C14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-tra
Date: 2013-11-01
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://deepblue.lib.umich.edu/bitstream/2027.42/133083/1/wp1063.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:wdi:papers:2013-1063

Access Statistics for this paper

More papers in William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109. Contact information at EDIRC.
Bibliographic data for series maintained by WDI ().

 
Page updated 2019-04-18
Handle: RePEc:wdi:papers:2013-1063