This paper investigates the absolute and conditional convergence process of the Western Balkan states toward the EU-27+1. The analyzed period is 2004–2018; therefore, we include the United Kingdom in the analysis. To test the effects of the 2008/2009 financial crisis on the absolute and conditional convergence process, we include three subperiods in this research: the precrisis period, the crisis period

In this paper, we analyze the integration maturity of Bosnia and Herzegovina (BiH) on its path towards EU membership and the role of institutions in the process. Integration maturity focuses on five main parameters for readiness to make integration successful: macroeconomic stability, functioning market economy, competitiveness, access to foreign finance and convergence. We combine a discussion of BiH's readiness on these parameters with insights from institutional economics, and show how inefficient institutions are major obstacles to BiH achieving sustained economic growth and attaining the necessary integration maturity. The main reasons for the institutional deficiencies relate to BiH being an ethnically divided country, but just as much it reflects corruption and elite capture of institutions. Only by thoroughly rethinking and reforming its institutional framework will Bosnia and Herzegovina be able to move forward.

Cuba has been a significant player in international and regional politics for a long while, particularly compared to its size. However, reliable data on the standard of living of its society is scarce. The literature review reflects how the Cuban state manipulated certain data forwarded to international organisations. Our objective was to implement field research and gain pri mary data on Cubans’ quality of life and income structure that could help to identify the extent of income inequality among the different demographic clusters in the country. We used individual questionnaires, as well as de -scriptive, frequency and inferential statistics. The results show varying in come inequalities among the different demographic clusters and a “perverse effect” in income distribution, leading to the formation of a “parasite” stra tum in Cuban society.

We investigate whether the European Union can be considered as a convergence machine after the 2008/2009 financial crisis. To do so, we econometrically test the relationship between the per capita GDP growth rate and macroeconomic variables in the period of 2004–2018, further subdivided into three periods: 2004–2008, 2009–2013 and 2014–2018. We hypothesize that the 2008/2009 financial crisis had a negative effect on the σ and β-convergence process. Our results support the convergence hypothesis, namely that the poor countries tend to grow faster than the rich countries. The convergence rates ranged between 1.71% and 4.51%. The negative effects of the crisis on convergence have been identified only for the absolute convergence. Our findings demonstrate that economic openness, inflation and government integrity have a positive impact on growth. The effects of unemployment have not been identified.

The Western Balkan countries have been lagging behind in their transition process, which started more than 30 years ago. While some justification can be made in the fact that the countries went through wars in the 1990s, the real problem is that they have not been able to create efficient institutions. Inefficient institutions hamper economic growth, as the countries do not attract foreign direct investment (FDI) to the extent they could and should. A lack of FDI affects three aspects of the transition process in the region: developing a functioning market economy, competitiveness, and convergence. Improvements in these areas can only be done by building efficient institutions.

Bosnia and Herzegovina (BiH) held presidential and parliamentary elections on 2 October 2022, amid the most severe political crisis since the 1992-1995 war. Inefficient institutions and problems created by political leaders led the country to the bottom of economic and political statistics in Europe. While citizens were hoping for a change, it did not come as the nationalist parties won the majority again. The change of the election law imposed by the High Representative during the election night did not bring much hope either. The country is still stuck in its nationalist rhetoric and the lack of dialogue among the decisionmakers. It is difficult to see how the newly elected political leaders will be the ones finally taking responsibility for bringing change.

Croatia, the newest member of the European Union, is set to introduce the euro as its currency in January 2023. Although it was announced that Croatia had fulfilled the Maastricht criteria for monetary union membership in May 2022, the country did not meet the criterion on the general government debt rate. This paper analyses Croatia’s readiness to join the euro area beyond meeting the Maastricht criteria. While monetary union membership has its positive sides, by joining, a country loses one of the most important tools of managing its economy – monetary policy. If the economy is strong and competitive enough, with efficient institutions and stable fiscal policy, the loss of monetary policy can be mitigated. However, Croatia’s decision to join the euro area is hasty, as if the country just wanted to join a prestigious club. This lack of preparedness could have major negative effects on one of the least competitive economies in the EU.

Abstract The objective of the article is to investigate the effects of the stage of integration on convergence in the European Union. The relationships between the selected macro-economic variables and per capita GDP growth rate are econometrically tested for the period 2004–2018 and three sub-periods: the pre-crisis period 2004–2008, the crisis period 2009–2013, and the post-crisis period 2014–2018. Convergence is estimated using ordinary least squares (OLS) semi-log regression based on cross-sectional data. The findings show that convergence rates range between 1.9 percent and 4.8 percent. The positive effects of deeper integration are identified, as well as the negative effects of the 2008/2009 crisis. The empirical results suggest that the selected variables have an impact on the per capita GDP growth rate in at least one analyzed period.

The aim of this paper is to analyze if the Western Balkan and Eastern Partnership countries converge towards the twenty-eight members of the European Union. The relationships between the selected macroeconomic variables and per capita GDP growth rate are econometrically tested to support this research. The analyzed period is 2004–2017, with two sub-periods: 2004–2008 and 2009–2013. The subdivision is made to test whether the recent financial crisis affected the absolute and conditional convergence process in the analyzed group of countries. The empirical findings support the economic convergence hypothesis. The results show that the recent financial crisis negatively affected the absolute and conditional convergence process, when economic variables are included in the analysis. The negative effects of the crisis on conditional convergence with economic and socio-political variables are not identified. The poorer countries in the analyzed group should do more to attract investment and open their economies, as gross fixed capital formation and economic openness have a positive impact on per capita growth, and keep low inflation or stabilize it, while general government debt and unemployment should be decreased in the examined sample of countries.

This paper aims to analyze the beta convergence of Western Balkan countries towards the EU-15 Member States in the period 2004-2016, and two sub-periods: 2004-2008 and 2009-2013. Beta convergence is based on the neoclassical growth theory and tests the hypothesis that poor countries tend to grow faster than rich countries, in per capita terms. The empirical findings support the economic convergence hypothesis, with convergence rates ranging from 1.1% to 2.3%. The results show that the recent financial crisis negatively affected the absolute and conditional convergence process, when economic variables are included. The main limitation of the research is the availability of data.