IDEAS home Printed from https://ideas.repec.org/a/pid/journl/v45y2006i4p1001-1009.html

Corrupt Clubs and the Convergence Hypothesis

Author

Listed:
  • Naved Ahmad

    (Institute of Business Administration (IBA), Karachi, Pakistan.)

Abstract

Empirical work in a cross‐section framework demonstrates little or no support for absolute convergence in per capita GDP. I argue in this paper that “divergence in corruption”, defined as the tendency of corrupt countries to become more corrupt faster than less corrupt nations, is a neglected factor that also determines the speed of convergence. Using Transparency International (TI) corruption perceptions index, I estimate C‐σ and C‐γ coefficients for corrupt and less corrupt economies to explore the C‐divergence in corruption rankings. The study concludes that corrupt countries are C‐converging, forming a “corrupt club”.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Naved Ahmad, 2006. "Corrupt Clubs and the Convergence Hypothesis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 1001-1009.
    • Handle: RePEc:pid:journl:v:45:y:2006:i:4:p:1001-1009
    as

    Download full text from publisher

    File URL: http://www.pide.org.pk/pdf/PDR/2006/Volume4/1001-1009.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-1036, July.
    2. Quah, D., 1990. "Galton'S Fallacy And The Tests Of The Convergence Hypothesis," Working papers 552, Massachusetts Institute of Technology (MIT), Department of Economics.
    3. Ben-David, Dan, 1996. "Trade and convergence among countries," Journal of International Economics, Elsevier, vol. 40(3-4), pages 279-298, May.
    4. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(2), pages 385-406, June.
    5. Friedman, Milton, 1992. "Do Old Fallacies Ever Die?," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 2129-2132, December.
    6. Danny Quah, 1993. "Galton's Fallacy and Tests of the Convergence Hypothesis (Now published in Scandinavian Journal of Economics 95 (4), 1993, pp.427-443.)," STICERD - Econometrics Paper Series 265, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    7. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    8. Veblen, Thorstein, 1915. "Imperial Germany and The Industrial Revolution," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1915.
    9. Chowdhury, Khorshed, 2004. "Convergence of Per Capita GDP Across SAARC Countries," Economics Working Papers wp04-07, School of Economics, University of Wollongong, NSW, Australia.
    10. G. E. Boyle & T. G. McCARTHY, 1999. "Simple measures of convergence in per capita GDP: a note on some further international evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 6(6), pages 343-347.
    11. Abramovitz, Moses, 1990. "The Catch-Up Factor in Postwar Economic Growth," Economic Inquiry, Western Economic Association International, vol. 28(1), pages 1-18, January.
    12. Dan Ben-David, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 653-679.
    13. David Abler & Jayanta Das, 1998. "The determinants of the speed of convergence: the case of India," Applied Economics, Taylor & Francis Journals, vol. 30(12), pages 1595-1602.
    14. M. Alam, 1992. "Convergence in developed countries: an empirical investigation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 128(2), pages 189-201, June.
    15. repec:bla:scandj:v:95:y:1993:i:4:p:427-43 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bienvenido Ortega & Antonio Casquero & Jesús Sanjuán, 2016. "Corruption and Convergence in Human Development: Evidence from 69 Countries During 1990–2012," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 691-719, June.
    2. Na Zhang & Chao Sun & Min Xu & Xuemei Wang & Jia Deng, 2023. "Catching Up of Latecomer Economies in ICT for Sustainable Development: An Analysis Based on Technology Life Cycle Using Patent Data," Sustainability, MDPI, vol. 15(11), pages 1-29, June.
    3. Şerife Özşahin & Gülbahar Üçler, 2017. "The Consequences of Corruption on Inflation in Developing Countries: Evidence from Panel Cointegration and Causality Tests," Economies, MDPI, vol. 5(4), pages 1-15, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Naved Ahmad, 2008. "Corrupt clubs and the convergence hypothesis," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(1), pages 21-28.
    2. Paul Johnson & Chris Papageorgiou, 2020. "What Remains of Cross-Country Convergence?," Journal of Economic Literature, American Economic Association, vol. 58(1), pages 129-175, March.
    3. Chowdhury, K, 2005. "What´s Happening to Per Capita Gdp in the ASEAN Countries?. An Analysis of Convergence, 1960-2001," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(3).
    4. Maciej Grodzicki, 2013. "Productivity Convergence in Manufacturing in the European Union: The Role of Economic Structure," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 5(2).
    5. Stephen Dobson & Carlyn Ramlogan & Eric Strobl, 2006. "Why Do Rates Of Β‐Convergence Differ? A Meta‐Regression Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(2), pages 153-173, May.
    6. Rensman, Marieke, 1996. "Economic growth and technological change in the long run : a survey of theoretical and empirical literature," Research Report 96C10, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    7. Johann Burgstaller & Michael Landesmann & Robert Stehrer, 1999. "Convergence Patterns at the Industrial Level: the Dynamics of Comparative Advantage," wiiw Working Papers 11, The Vienna Institute for International Economic Studies, wiiw.
    8. repec:dgr:rugsom:96c10 is not listed on IDEAS
    9. FE, Doukouré Charles, 2010. "Réduction de Droits de Douane et Convergence Réelle dans l'UEMOA [Tariffs Reduction and Real Convergence in WAEMU]," MPRA Paper 26763, University Library of Munich, Germany.
    10. Robert Stehrer & Julia Woerz, 2009. "Industrial Diversity, Trade Patterns, and Productivity Convergence," Review of Development Economics, Wiley Blackwell, vol. 13(2), pages 356-372, May.
    11. Christian Amplatz, 2003. "The Economic Convergence Performance of Central and Eastern European Countries," Economic Change and Restructuring, Springer, vol. 36(4), pages 273-295, December.
    12. Phiri, Andrew, 2018. "Is Swaziland on a path of convergence towards her main trading partners?," MPRA Paper 88790, University Library of Munich, Germany.
    13. Ramesh Chandra Das & Soumyananda Dinda & Frank Martin, 2018. "Defence Outlays Across Countries: Are They Converging?," South Asian Journal of Macroeconomics and Public Finance, , vol. 7(1), pages 109-129, June.
    14. Ronny Correa-Quezada & Lucía Cueva-Rodríguez & José Álvarez-García & María de la Cruz del Río-Rama, 2020. "Application of the Kernel Density Function for the Analysis of Regional Growth and Convergence in the Service Sector through Productivity," Mathematics, MDPI, vol. 8(8), pages 1-20, July.
    15. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
    16. de la Fuente, Angel, 1997. "The empirics of growth and convergence: A selective review," Journal of Economic Dynamics and Control, Elsevier, vol. 21(1), pages 23-73, January.
    17. Uzma Zia, 2019. "An Evidence of Diverging SAARC Economies," PIDE-Working Papers 2019:170, Pakistan Institute of Development Economics.
    18. Mill�n D�az-Foncea & Carmen Marcuello, 2014. "The Relation between Total Employment and Cooperative Employment: A Convergence and Causality Analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(1), pages 71-92, March.
    19. Mark J. Holmes, 2005. "New Evidence on Long-Run Output Convergence Among Latin American Countries," Journal of Applied Economics, Taylor & Francis Journals, vol. 8(2), pages 299-319, November.
    20. O'Neill, D. & Van Kerm P., 2003. "A New Approach for Analysing Income Convergence across Countries," Economics Department Working Paper Series n1261003, Department of Economics, National University of Ireland - Maynooth.
    21. Agnieszka Głodowska & Bożena Pera, 2019. "On the Relationship between Economic Integration, Business Environment and Real Convergence: The Experience of the CEE Countries," Economies, MDPI, vol. 7(2), pages 1-19, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:45:y:2006:i:4:p:1001-1009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Khurram Iqbal (email available below). General contact details of provider: https://edirc.repec.org/data/pideipk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.