Economic Review, Vol. 64 No. 4, 2013.
Original scientific paper
BEYOND THE GLOBAL RECESSION: MUTUAL TRADE AND ECONOMIC CONVERGENCE
Goran Buturac
Abstract
The purpose of this paper is to explore mutual trade and economic convergence in South-east European (SEE) countries beyond the global recession.The obtained results for the period 2000-2010 confi rm the process of macroeconomic convergence among the analyzed SEE countries. The intensity of the process is different for individual analyzed variables. Macroeconomic convergence is most evident in the equalization of the price level (CPI index) and the indebtedness of the state sectors in SEE countries. The analysis of GDP per capita indicates a slight decrease in the gap which appeared in 2003, and continued to develop intensively during the recession. Convergence is also present in reducing the difference in the level of wages, as well as in levels of unemployment.The analysis of mutual trade shows that most SEE economies liberated their international trade rather quickly, and developed intense trade relations with other countries. Trade specialization and comparative advantages are still expressed in low value added products. The obtained results confirm the possibilities of the strengthening of mutual economic cooperation and joint efforts on the international markets especially in the circumstances of the global economic crisis and post-recession period.
Keywords
global recession; economic convergence; mutual trade; SEE countries
Hrčak ID:
106541
URI
Publication date:
10.8.2013.
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