Economic growth and income convergence : impact of European integration

Abstract

This thesis analyzes and explains international patterns of income growth among European countries and evaluates influence of European integration on income convergence among its member states. In the first part of the thesis relevant theories are presented. Then empirical analysis of economic growth among European countries is performed. Results of analysis reveal evidence of income convergence within EU-25, i.e. data show negative relationship between the initial level of GDP per capita and subsequent GDP per capita growth rate among European countries. In addition to that, analysis suggests that European countries benefit from EU membership through faster economic growth