Convergence in an open-economy growth model in Moldova

Abstract

The article tests the concept of convergence on the assumption that Moldova would join the European Union. In the literature on economic growth, much attention has been to the phenomenon of the convergence of regional economies with lower level incomes to grow faster. The authors use statistical and econometrics methods to measure and simulate the cross-country convergence. We find that the data does support the presence of absolute beta convergence. JEL: C1; C13