Svatopluk Kapounek, Ph.D., Faculty of Business Economics, Mendel University, Zemedelska 1, Brno, 613 00, Czech Republic and Lubor Lacina, Ph.D., Faculty of Business Economics, Department of Finance, Mendel University, Czech Republic, Mendel University of Agriculture and Forestry, Zemedelska 1, Brno, 613 00, Czech Republic.
The authors suppose that European integration process creates positive externality which is able to develop and maintain competitive advantage of the member states in terms of economic growth. This hypothesis is based on the endogenous growth theory. This competitive advantage in economic growth concurrently differs in initial conditions of economic growth from states which not anticipate in the European integration process. The estimated mean steady-states for each group are significantly different from each other implying that the groups are convergence clubs. The aim of this article is to identify two sets of countries in the growth model of multiple steady-states. The difference in the sets is represented by the role of the country in the European integration process.
Data/Methods:
Sources of data: OECD database
Expected Results:
The analysed periods are divided into the four parts corresponds to integration waves and relate approximately to the European integration process. The authors show, that the groups in the multiple steady-states model are changing during the analysed periods.