Investigating the real convergence of Western Balkan countries

Purpose: The aim of this article is to analyse the real convergence of the Western Balkan economies to the European Union. Real convergence is the process of reducing inequality in income levels between countries at different levels of development, where the economic growth of underdeveloped countries catches up to the growth of developed countries. Methodology: Convergence is assessed through unconditional and conditional beta-coefficient, and sigma-coefficient. The study covers the period 2010-2023. Findings: The analysis results confirm the hypothesis of convergence for all the Western Balkan countries included in the study, however, the speed of adjustment is not high enough to ensure the closing of the income gap in a relatively short period. The countries need to undertake deep reforms, to bring their economies closer to those of the European Union.