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International Journal of Scientific and Engineering Research
ISSN Online 2229-5518
ISSN Print: 2229-5518 4    
Website: http://www.ijser.org
scirp IJSER >> Volume 3,Issue 4,April 2012
Speed of convergence. CEE and Western Balkans countries
Full Text(PDF, )  PP.88-94  
Author(s)
Enton Duro
KEYWORDS
“Convergence club” for Albania, Convergence of income per capita, GNI, Mathematical neoclassical model of growth, Speed of convergence
ABSTRACT
The implications of neoclassical model in growth theory are still dominant. One of the implications is convergence hypo-thesis which means that in the long run income per capita will converge in the steady state level. With regards it is suggesting a natural methodology for finding support of convergence hypothesis. Different researches found the speed of convergence for different "convergence club" countries and regions around the world. Regarded to this it is suggested" convergence club" countries for Albania which is composed by Central, Eastern Europe (CEE) and Western Balkans countries because of same similar characteristics. The observed period for this study is 2000-20R0 and the explanatory variable is GNI per capita. In this study, after testing the convergence hypothesis in cross-sectional data set through regression analyses, it is estimated the speed of convergence around 2% per year between this "convergence club" coun-try
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