Abstract (eng)
Convergence is a very debatable topic in all growth literature. In different kinds of literature, the authors try to find evidence about the existence of economic convergence.
This master’s thesis tries to find evidence for economic convergence across the European Union countries from 1995 up to 2018.
Moreover, the concepts of sigma-convergence and beta-convergence are discussed. To find evidence of economic convergence, the methodology proposed by Phillips & Sul is used.
In addition, the well-known and debatable method from the 90s, proposed by Barro & Sala-i-Martin about the beta-convergence is briefly explained. While discussing the method of Barro & Sala-i-Martin, the reasons are explained why according to Phillips & Sul, this proposed method is not recommended to be used.
This master’s thesis is organized into the following sections. The first section consists of an introduction, where the idea of convergence is explained in more detail and why according to Phillips & Sul, beta convergence is a necessary condition for convergence, but not a sufficient one. The second section consists of the literature review. The third section includes the methodology of relative convergence, sigma convergence and beta convergence. The fourth part briefly explains the data used. Next, the fifth section is based on empirical results, which analyses the estimated results of the regression models for beta, relative and sigma convergence. Finally, the last section summarizes based on the results obtained from the regression models.