Intl. Conference on Economics, Finance & Business, Paris

ECONOMIC GROWTH, REAL CONVERGENCE AND SOCIAL CONVERGENCE IN SOUTHERN AND EASTERN EUROPEAN COUNTRIES: THE CASES OF PORTUGAL AND HUNGARY

JOÃO LOPES

Abstract:

This paper studies economic growth and real convergence of Portugal and Hungary to the European Union average, between 1994 and 2022. The quantification of real convergence is made with the conventional measures used for this purpose: sigma, beta and catching up. By analogy, these measures are used to quantify the so-called “social convergence”, through various quality of life indicators. Next, an analysis is made of the potential relationships between real (or “economic”) convergence and “social” convergence, highlighting the importance of income and wealth inequalities and making a brief reflection on other relevant dimensions, namely, the governance of the area euro and consequent budgetary austerity; the aging of the population and migratory movements; different cultural habits and values, for example, with regard to work effort and the degree of confidence; the role of the State in social protection and family networks; the quality of institutions, the degree of corruption, and populist and illiberal tendencies.

Keywords: Economic growth, Real convergence; Social convergence; Portugal; Hungary