Dual-Model Approach to Measuring Convergence Sustainability in the Visegrad Group

1* 23 Economic convergence has become a European research topic of interest during recent decades, particularly since new member countries joined the EU in 2004. Measuring cross-country convergence focuses on real convergence, taking per capita income as a measure of living standards based on the convergence criteria defined by Sala-i-Martin (1996). The objective of this paper is to bring together supply-side (real convergence) and demand-side (BoP-constrained approach) concepts of economic growth aimed at identification of convergence sources in the emerging economies of the Visegrad Group. The sustainability of convergence in this study utilizes the BoP-constrained growth theory developed by A. Thirlwall (1979). Our results show that all the countries in the Visegrad Group exhibit relatively instant convergence, which could continue considering the in-tensity and direction of structural changes that affect the export demand elasticities and labour productivity.