Transition and convergence in Central and Eastern Europe

The paper provides an analysis of the convergence in selected macroeconomic fundamentals of several Central and East. European (CEE) countries. The se lected CEE countries are categorized to reflect the respective institutiona l and geographical aspects of economic transformation in the region. Conver gence in macroeconomic fundamentals among the transition countries was conf irmed in general, Common institutional features and common economic policie s tend tr,correlate with a higher degree of convergence. This finding is in line with neoclassical growth theory, which supports the occurrence of con vergence among similar countries.