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An Integrated Framework For Analysing Income Convergence

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  • DONAL O'NEILL
  • PHILIPPE VAN KERM

Abstract

We develop an integrated framework for studying income convergence that incorporates traditional measures of &bgr;-convergence and &sgr;-convergence. These concepts are formally linked by a measure of re-ranking (or leapfrogging). Our proposed measure of &bgr;-convergence allows for nonlinearities in the growth process and explicitly identifies the contribution of faster growth among low-income regions to reductions in overall inequality. To develop our framework we exploit the close links that exist between studies of income convergence and studies that examine the progressivity of the tax system. We illustrate our approach by examining both cross-country and regional income dynamics. Copyright © 2008 The Authors; Journal compilation © 2008 Blackwell Publishing Ltd and The University of Manchester.

Suggested Citation

  • Donal O'Neill & Philippe Van Kerm, 2008. "An Integrated Framework For Analysing Income Convergence," Manchester School, University of Manchester, vol. 76(1), pages 1-20, January.
    • Handle: RePEc:bla:manchs:v:76:y:2008:i:1:p:1-20
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    Cited by:

    1. Paul, Saumik & Fukao, Kyoji, 2017. "The Role of Structural Transformation in Regional Productivity Growth and Convergence in Japan: 1874 - 2008," CEI Working Paper Series 2016-12, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    2. Fukao, Kyoji & Paul, Saumik, 2018. "A Framework to Study the Role of Structural Transformation in Productivity Growth and Regional Convergence," ADBI Working Papers 833, Asian Development Bank Institute.
    3. Fukao, Kyoji & Paul, Saumik, 2017. "The Role of Structural Transformation in Regional Convergence in Japan: 1874-2008," Discussion Paper Series 665, Institute of Economic Research, Hitotsubashi University.
    4. Shatakshee Dhongde & Jacques Silber, 2016. "On distributional change, pro-poor growth and convergence," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(3), pages 249-267, September.
    5. Mussini, Mauro, 2013. "On decomposing inequality and poverty changes over time: A multi-dimensional decomposition," Economic Modelling, Elsevier, vol. 33(C), pages 8-18.
    6. Thanh Tam Nguyen-Huu & Minh Nguyen-Khac & Quoc Tran-Nam, 2017. "The role of environmental regulations and innovation in TFP convergence: Evidence from manufacturing SMEs in Viet Nam," WIDER Working Paper Series 092, World Institute for Development Economic Research (UNU-WIDER).

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