Abstract:

The plausibility of catching-up with Western Europe by six East European countries is assessed by examining a hypothetical growth scenario. Per capita GDP in Western Europe is chosen as an adequate benchmark. The requirements for convergence are then examined, with particular reference to population, capital stock, investment, trade and 'technical progress'. The growth rates suggested by a successful convergence process for Eastern Europe turn out to be not unrealistic but nevertheless rather ambitious. Future institutional developments seem to hold the key to success.

Language: English

Document Type: Research article