Economic convergence of the new member states (NMS) of the EU towards the old EU countries (EU-15), not only in terms … indebtedness. At the same time we evaluate the impact of convergence on the EU-15 countries also, by endogenising offshoring and … process of convergence. We find that in a general equilibrium setting fears of large adverse effects of a relocation of EU-15 …

positive than in market economies. Over time, this difference has vanishes. Convergence can be attributed to changing believes …