Divergence Period in the European Convergence Process.

This paper presents the analysis of sigma (σ) and unconditional beta (β) convergences of per capita GDP among the ten European countries which accessed the European Union in 2004. Our results confirm the existence of both types of convergence in the second half of the 1990s and the 2000s, whereas in the first half of the 1990s, the countries rather diverged or at least did not converge. Generally, the poorer and new EU member states grew faster than the richer new EU member states. As a result, the income gap between these countries has decreased although it still remains quite large. The convergence occurred at the rate of 2.87% during the years 1995–2006 and 3.23% during 1996–2006. [ABSTRACT FROM AUTHOR]