Theoretic concept of economic and ecological convergence

Abstract

The issue on whether or not poor regions tend to catch-up richer ones plays a significant role in regional growth theory. The empirical growth models were relying more on available data such as real per capita income, savings and investment, government expenditures, exports, labor force and its structure by industries, education variables like school enrollment, etc. The concept of economic convergence according to Matkoski and Prochanik (2004) should be address in two aspects. First, a tendency towards leveling (equalization) per capita incomes and growth rates among counties (regions). Second, tendency toward economic cycle convergence (that is ups and downs of economic cycles ideally should conform). Both convergence concepts are independent and tested separately. In ourresearch we address only first part of the issue, for it is assumed that within boundaries of one country economic cycles should coincide due the equality of macroeconomic conditions.