Exploring the Economic Convergence in the Euís New Member States by Using Nonparametric Models

by Raileanu Szeles, Monica
Published in Romanian Journal of Economic Forecasting
, 2011, volume 14 issue 1, 20-40

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Abstract

This paper analyzes the process of real economic convergence in the New Member
States, by using non-parametric methods, e.g. the ash-warping test, kernel density
estimation and stochastic kernel. The main findings of the paper are the bimodality of
income density distribution over time and across countries, the lack of convergence at
a single point in time and the presence of convergence clubs in the income distribution
from 1995 to 2008.They suggest the lack of absolute convergence on long term
(1995-2008), and also when looking only from 2003 onwards. The paper concludes
that, in comparison with the parametrical approach, the non-parametric one gives a
deeper, real and richer perspective on the process of real convergence in the NMS.

Keywords: real convergence, non-parametric models, stochastic kernel, modality
JEL Classification:
O11, C14