Real Convergence and Integration
by
Iancu,
Aurel
Published in Romanian Journal of Economic Forecasting, 2008, volume 8
issue 1, 27-40
Abstract
The study ** is based on the critical observations that competitive market
forces alone are not able to assure convergence with the developed countries.
These observations are grounded on the results of the computation of the
marginal rate of return on capital (which contradict the neoclassical model
hypotheses), as well as on the real process of polarisation of the economic
activities, taking place worldwide and in accordance with the law of
competition. Unlike those who trust the perfect competitive market virtues, the
EU’s economic policy is realistic as it is based on the harmonisation of the
market forces with an economic policy based on the principle of cohesion, which
supports, by means of economic levers, the less developed regions and member
countries. This paper deals with the evolution of the EU cohesion funds, as well
as with the results of convergence.
Keywords:
Neoclassical
model, marginal
rate of return on capital polarisation, convergence, divergence, cohesion, cohesion
funds, structural
funds, variation
coefficient
JEL Classification:
F02, F15, O57, P37
