IMF Working Papers

How Far Is Eastern Europe from Brussels?

Author/Editor:

Ratna Sahay ; Carlos A. Végh Gramont ; Stanley Fischer

Publication Date:

April 1, 1998

Electronic Access:

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Summary:

The current destination of Central and Eastern European countries—explicitly for some, implicitly for all—is Brussels. The concept of the distance from Brussels is multi-dimensional. One simple measure, not without theoretical and empirical justification, is physical distance. This paper’s focus, however, lies more in the distances in time and economic space. The paper first compares income gaps between Central and Eastern European and European Union (EU) countries, then evaluates recent economic performance in Central and Eastern Europe in light of EU standards. Finally; addresses the question of how long it will take the Central and Eastern European countries to close the income gap with EU countries.

Series:

Working Paper No. 1998/053

Subject:

Fiscal policy Fiscal stance Government consumption Income Inflation National accounts Personal income Population and demographics Population growth Prices

Notes:

This paper was presented at the Kiel Week Conference held in Kiel, June 26-27, 1996, and at a conference on "The European Union and Central and Eastern Europe" held in Liechtenstein on July 4-6, 1996.