Behind the Eastern-Western European convergence path: the role of geography and trade liberalization

Fuente: arXiv
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Hauptverfasser: Campoamor, Adolfo Cristobal, Parcero, Osiris Jorge
Format: Preprint
Veröffentlicht: 2024
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author Campoamor, Adolfo Cristobal
Parcero, Osiris Jorge
author_facet Campoamor, Adolfo Cristobal
Parcero, Osiris Jorge
contents This paper proposes a two blocks and three regions economic geography model that can account for the most salient stylized facts experienced by Eastern European transition economies during the period 1990 2005. In contrast to the existing literature, which has favored technological explanations, trade liberalization is the only driving force. The model correctly predicts that in the first half of the period, trade liberalization led to divergence in GDP per capita, both between the West and the East and within the East. Consistent with the data, in the second half of the period, this process was reversed and convergence became the dominant force.
format Preprint
id arxiv_https___arxiv_org_abs_2401_05107
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Behind the Eastern-Western European convergence path: the role of geography and trade liberalization
Campoamor, Adolfo Cristobal
Parcero, Osiris Jorge
General Economics
Economics
This paper proposes a two blocks and three regions economic geography model that can account for the most salient stylized facts experienced by Eastern European transition economies during the period 1990 2005. In contrast to the existing literature, which has favored technological explanations, trade liberalization is the only driving force. The model correctly predicts that in the first half of the period, trade liberalization led to divergence in GDP per capita, both between the West and the East and within the East. Consistent with the data, in the second half of the period, this process was reversed and convergence became the dominant force.
title Behind the Eastern-Western European convergence path: the role of geography and trade liberalization
topic General Economics
Economics
url https://arxiv.org/abs/2401.05107