Bulgarian GDP structures: convergence with the EU [paper]

Abstract

The paper studies the convergence of the GDP expenditure and production structures of Bulgaria and the Czech Republic with the EU. It is structured as follows: first, we analyse convergence of the dynamics of the respective GDP components in the two structural cross-sections. To this end, the behaviour of respective components is characterized and an econometric evaluation of the existing convergence between them is conducted. After that, the convergence of any of the two structures of GDP is examined and trends in its changes over time are interpreted. Convergence in the dynamics of components is measured by using the β-convergence approach and panel modelling. Regarding GDP structural convergence, it is calculated through the divergence index. All data used are on a quarterly basis and refer to the period starting from the first quarter (for structural convergence – from the second quarter) of 1997 till the first quarter of 2005 inclusive.