The End of Slovakia’s Convergence in GDP per Capita at PPP: Role of Shortcomings in Input Data Submitted to Eurostat

Hlavac, Marek (2023): The End of Slovakia’s Convergence in GDP per Capita at PPP: Role of Shortcomings in Input Data Submitted to Eurostat.

Abstract

According to official statistics, Slovakia’s GDP per capita at PPP has been declining compared to the EU-27 average since 2016. This unfavorable evolution is influenced by shortcomings in the input data provided to Eurostat – especially in expenditures on housing rentals and in housing stock data. Using the Eurostat-OECD methodology for calculating purchasing power parities, we estimate alternative scenarios that correct these shortcomings. Our results still suggest that Slovakia’s convergence level has been stagnating since 2016. They are less optimistic than those by other Slovak institutions, and are not very sensitive to changes in assumptions about the prices of rentals.

• Item Type: MPRA Paper
• Language: English
• Keywords: Slovakia; purchasing power parity; convergence; housing; imputed rent
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E01 - Measurement and Data on National Income and Product Accounts and Wealth ; Environmental Accounts; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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