The paper examines the evolution of income per capita for a sample of high-income transition countries in the\r\nperiod 1991-2007. The analysis focuses on the dynamics of income per capita convergence throughout the period.\r\nWe review patterns of income dispersion in Central Europe in a historical perspective and examine the dynamics\r\nof convergence over time. We present the model of beta and sigma convergence in augmented Solow model with\r\nhuman capital accumulation. Our evidence suggests that high-income transition countries experienced a period of\r\nrobust convergence as the income per capita differential, relative to the U.S level, diminished substantially over time.\r\nThe increase in the stock of human capital contributed substantially to the speed of real convergence.
Loading....