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Convergence of Human Development Levels

In: Proceedings of the Conference on Human and Economic Resources

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Author Info

  • Fuat Erdal

    (Adnan Menderes University)

  • Emre Can

    (Izmir University of Economics)

  • Gaye Kocabas

    (Izmir University of Economics)

Abstract

Reducing regional disparities can be seen as one of the main conditions of sustainable development. The neoclassical convergence hypothesis states that regional or inter-country differences would be reduced by development. Almost all studies test the convergence hypothesis by using per capita income levels and find mixed results. However, convergence of development levels and living standards is more important for the sustainability of economic growth. This study aims to re-test the convergence hypothesis by employing two more indicators of development by the UNDP, namely health index and education index, in addition to per capita income levels. By using the beta convergence test, which controls if there is a tendency for per capital income to equalize across economies, convergence of development levels is tested among a panel of 177 countries. The empirical evidences from the cross-sectional analyses suggest the existence of a significant converging trend among the countries with respect to education levels and per capita income levels.

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Bibliographic Info

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This chapter was published in:

  • Oguz Esen & Ayla Ogus (ed.), 2006. "Proceedings of the International Conference on Human and Economic Resources," Proceedings of the IUE-SUNY Cortland Conference in Economics, Izmir University of Economics, number 2006, March.
    This item is provided by Izmir University of Economics in its series Papers of the Annual IUE-SUNY Cortland Conference in Economics with number 200618.

    Handle: RePEc:izm:prcdng:200618

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    Postal: Sakarya Caddesi, No:156 35330 Balçova - İzmir
    Fax: (90) 232 279 2626
    Web page: http://eco.ieu.edu.tr
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    Related research

    Keywords: convergence; human development; Turkey;

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    1. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers 201, University of Rochester - Center for Economic Research (RCER).
    2. Giannetti, Mariassunta, 2002. "The effects of integration on regional disparities: Convergence, divergence or both?," European Economic Review, Elsevier, vol. 46(3), pages 539-567, March.
    3. de la Fuente, Angel, 2002. "On the sources of convergence: A close look at the Spanish regions," European Economic Review, Elsevier, vol. 46(3), pages 569-599, March.
    4. Bairam, Erkin I. & McRae, Shaun D., 1999. "Testing the convergence hypothesis: a new approach," Economics Letters, Elsevier, vol. 64(3), pages 351-355, September.
    5. Paul Cheshire, 2000. "Endogenous Processes in European Regional Growth: Convergence and Policy," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 31(4), pages 455-479.
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