Theoretical and Applied Economics
No. 8 / 2006 (503)
The European Model: Economic Growth, Convergence and Cohesion
Aura Socol
Academia de Studii Economice Bucuresti
Abstract. The european model is confronted with a potential crise. Economic convergence concerns the gaps in living standards between countries: are they closing or widening, and at what speed? Are relatively poor economies to remain poor for many generations? Are the rich countries of next century to be the same as relatively rich countries of nowadays? Is the degree of income inequality across economies increasing or falling over time? Posing these questions, motivating convergence debate, immediately raises the problem of the variable/variables that need to be considered. In our study, prior to providing answers to these questions, basic definitions concerning convergence in European model are followed by an overview of specific features, achievements and hurdles countries have had to overcome on their way from centrally planned towards market economy. After that, a summary of Solow-Swan model of economic growth is offered. Concept of convergence emerges here as a natural implication of the model. The distinctions between Solow-Swan model and endogenous growth model are stated. Finally, some measures of macroeconomic policy for sustainable growth are presented and interpreted in connection with real macroeconomic situation of the Romanian economy.
Contents
Sustainable development at tax-deductible costs or how to assure sustainable development by one’s way of living
New Informatization Strategy in the Romanian Research and Educational System
Issues of Performance Analysis – A Critical Approach in the Context of Information and Corporate Governance Theories
Economic Transformation of European Union in the Context of Kondratieff Cycles
Succes on the International Market Depends on Brand Strategy
Indicators System for Poverty Measurement
Corporate Governance, Essential Lever of the Policy for Stockholders Wealth Maximization and its Contemporary Complements
The European Model: Economic Growth, Convergence and Cohesion
Investment Process in Territorial Government Sectors
Market and Money: Economic Instruments of Political Europe
Intangible Assets – Important Resources for Performant Enterprise Gestion
Impact of Exchange Rate Fluctuation to the Romanian Foreign Currency Reserve
Labour Force Migration Effects within European Union
The Number of Human Population, a Statistical and Economical Synthesis of Alternative Evolution towards Demographical Explosion or Implosion