Work detail

Convergence in Productivity between the Czech Republic and the European Union

Author: Mgr. Ladislav Wintr
Year: 2002 - summer
Leaders: doc. Ing. Tomáš Cahlík CSc.
Work type: Economic Theory
Language: Czech
Pages: 70
Awards and prizes: Karel Engliš Award by Charles University Rector for the best diploma thesis
M.A. with distinction from the Dean of the Faculty of Social Sciences for an extraordinarily good masters diploma thesis
Abstract: The presented thesis seeks to answer two questions -- what are the sources of convergence of two economies and whether there is in fact convergence in productivity between the Czech Republic and European Union.
The theoretical section of the work concentrates on the theories of economic growth and models of technological diffusion. It reveals that the predictions of economic theories concerning convergence are ambiguous. In spite of this the theories identify some mechanisms that promote convergence. The contribu-tion of some of those is being tested in the second part of the thesis.
The empirical part of the work is searching for a partial answer to the question whether there is convergence in productivity between the Czech Republic and the countries of European Union. At first we test a couple of hypotheses of convergence between the Czech Republic and Germany on the level of individual branches of the national economy. We proved the positive influence of foreign controlled enterprises on productivity of the same branch and convergence of domestic and foreign enterprises. On the contrary we could not verify the hypothesis of convergence of the Czech and German productivity on that level. We developed tests of long-term convergence based on the analysis of stationarity and succeeded only in proving convergence of pro-ductivity growth rates between Czechoslovakia and France, Italy and Spain.


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