Convergence in Emerging Europe: Sustainability and Vulnerabilities

July 1, 2008

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Format: Chicago

Athanasios Vamvakidis. Convergence in Emerging Europe: Sustainability and Vulnerabilities, (USA: International Monetary Fund, 2008) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The emerging European economies have been converging rapidly towards the more advanced European economies in recent years. However, large external imbalances in parts of the region have raised questions about sustainability and concerns about vulnerabilities. Empirical evidence in this paper suggest that the convergence trend of emerging Europe is based on strong fundamentals and is expected to continue, but at a slower pace. Moreover, the convergence path may be volatile as countries with large external imbalances adjust, with risks of a hard landing in some cases.

Subject: Current account balance, Current account deficits, Current account imbalances, External debt, Structural reforms

Keywords: Current account deficit, Deficits Based, EU harmonization, Labor market, Production function, Real GDP, Transition economy, WP

Publication Details

Pages:

30
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2008/181
Stock No:

WPIEA2008181
ISBN:

9781451870398
ISSN:

1018-5941

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