The European Model: Economic Growth, Convergence and Cohesion
The european model is confronted with a potential crise. Economic convergence concerns the gaps in living standards between countries: are they closing or widening, and at what speed? Are relatively poor economies to remain poor for many generations? Are the rich countries of next century to be the...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2006-08-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/137.pdf
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| Summary: | The european model is confronted with a potential crise. Economic convergence concerns
the gaps in living standards between countries: are they closing or widening, and at what speed? Are
relatively poor economies to remain poor for many generations? Are the rich countries of next century to
be the same as relatively rich countries of nowadays? Is the degree of income inequality across economies
increasing or falling over time? Posing these questions, motivating convergence debate, immediately
raises the problem of the variable/variables that need to be considered. In our study, prior to
providing answers to these questions, basic definitions concerning convergence in European model are
followed by an overview of specific features, achievements and hurdles countries have had to overcome
on their way from centrally planned towards market economy. After that, a summary of Solow-Swan
model of economic growth is offered. Concept of convergence emerges here as a natural implication of
the model. The distinctions between Solow-Swan model and endogenous growth model are stated.
Finally, some measures of macroeconomic policy for sustainable growth are presented and interpreted in
connection with real macroeconomic situation of the Romanian economy. |
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| ISSN: | 1841-8678 1844-0029 |