WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 11, 2014
Modelling of Maastricht Convergence Criteria Influence on Economic Growth: An Empirical Study of Visegrad Group Countries
Authors: ,
Abstract: Since creation of the Euro Area the fulfillment of the Maastricht criteria is the exhaustively defined condition for the adoption of the euro. It is now largely accepted that the Maastricht norms reinforced by revised Stability and Growth Pact, Fiscal Compact, Six-pack, Euro Plus Pact have imposed serious macroeconomic constrains on economic performance by not taking into account specific problems of particular countries. In 2008, most of the European Union member states experienced significant growth deceleration and this systemic crisis has certainly affected the convergence process. Thus this paper aims to evaluate the Maastricht criteria influence on real convergence and to show how recent crisis affected the real convergence process in Visegrad Group countries to the Euro Area average economic level.The model is calculated using panel regression method with multiplicative dummy variables and the model parameters are estimated by GLS estimator. From this analysis and using panel data estimation techniques, it is possible to detect any significant influence of the Maastricht convergence criteria on real convergence.
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Keywords: Economic convergence, Crisis, Euro Area, GLS estimator, Panel data analysis, Visegrad Group
Pages: 350-358
WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 11, 2014, Art. #32