Convergence and Inequality : the case of Western Balkan countries.

This paper analyses the convergence process of inequality in income among five Balkan countries in the 1989-2005 period. This study is carried out in comparison with the situation in the European Union of 27 countries. The originality of our approach is to consider the convergence of country contributions to the international income inequality. The model allows simultaneously to test the convergence process of income and inequality. The results indicate a real convergence process between Balkan countries, while persistence is detected between European Union countries. However, the development gap between Balkans and European Union remains important.