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Business & Economics

THE APPLICATION OF TWO ECONOMETRIC MODELS IN THE ß-CONVERGENCE APPROACH IN THE CASE OF VISEGRAD FOUR REGIONS
Jan Nevima, Ingrid Majerova

ABSTRACT. The paper focuses on the analysis of the real convergence process in the Disregard Four countries. The aim of the paper is to verify the concept of β-convergence at the regional level as the case of unconditional convergence. The theoretical background of the paper defines the methodological concept of real convergence which is based on the neoclassical growth model. The empirical part of the paper concentrates on the analysis of β-convergence in 35 NUTS 2 regions of the Visegrad Group in the period between 1995 and 2012 to a steady state. The steady state is represented by an average of real GDP per capita in the EU 28. The process of β-convergence is analysed and evaluated by the nonlinear regression econometric model, which is formulated in two variations based on the mathematical concept of deterministic convergence. The hypothesis of β-convergence was verified based on the presented estimations of both econometric models .

KEYWORDS: Visegrad Group, NUTS 2 region, ß-convergence, nonlinear regression econometric model, non-linear panel data regression model.

JEL classification: C01, C15, O11, O47.