Beta Convergence among Former Socialist Countries
Abstract The aim of this paper is to analyze the convergence process among former Socialist countries, the Central and Eastern European (CEE), Western Balkan and Eastern Partnership countries. The relationships between the selected macroeconomic variables and per capita GDP growth rate are econometrically tested to support this research. The analyzed period is 2004-2016, with two sub-periods; 2004-2008 and 2009-2013. The subdivision is made to test if the recent financial crisis affected the absolute and conditional convergence process. The empirical findings support the economic convergence hypothesis. The results show that the recent financial crisis negatively affected only the absolute convergence process. The negative effects of the crisis on conditional convergence are not identified. The poorer countries in the analyzed group should do more to attract investment, as gross fixed capital formation has a clear positive impact on per capita growth in the examined sample of countries.