POLAND'S CONVERGENCE WITH THE EUROPEAN UNION

The convergence hypothesis, an implication of neoclassical growth models, is frequently discussed in literature. Empirical research shows that several additional conditions need to be met for convergence to take place. Processes such as economic integration, foreign direct investment, international transfers and knowledge and technology diffusion should help Poland catch up with more affluent European Union member states. Available data is insufficient, however, for a positive verification of the convergence hypothesis in Poland. Predictions of its potential impact on the Polish economy can be obtained thanks to an indirect approach. Overall, Poland needs about 55 years to reach 80% of the average GDP level in the 15 "old" EU member states (before the last round of enlargement).