Structural Transformation in Central and Eastern European Countries' Agriculture: Convergence or Divergence?

The paper investigates the structural transformation of agriculture in Central and Eastern European countries using macro data in period between 1990 and 2011. The role of agriculture in total employment and GDP and the share of food expenditure have declined all analysed countries period in question. Our results indicate that despite of common trend the initial differences between countries have remained among countries. The findings of panel unit root tests do not confirm the convergence hypothesis in agricultural structural transformation of the region. The structural transformation does not follow common path in these countries. Our estimations also reinforces that the convergence analysis require careful application of various panel unit root tests.