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Economic Convergence: A Panel Analysis of Growth Variables in Selected Asian and Latin American Countries - Convergenza economica: un’analisi panel di variabili di crescita in una selezione di paesi asiatici e dell’America del Sud

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This paper tries to investigate some of the major factors considered to be of importance for economic development. Five countries from Asia (China, Indonesia, Malaysia, South Korea and Thailand) and five from Latin America (Argentina, Brazil, Colombia, Mexico and Venezuela) with the addition of Turkey, believed to resemble these Latin American countries in her development experience, were examined by a panel regression analysis. The model included seven cross-sectional variables (educational expenditures, external debt, gross capital formation, savings, GDP deflator, manufacturing value added and trade openness) for 21 years from 1992 to 2012 inclusive. The test results indicate that the most important factor influencing the economic growth of these countries was their external debt which possibly prevents or delays the convergence of the borrowing countries’ incomes with those of the high income countries. The gross capital formation and the manufacturing value-added variables were also significant, though, to a lesser extent. - Questo studio ha lo scopo di esaminare alcuni dei maggiori fattori considerati importanti per lo sviluppo economico. Cinque paesi asiatici (Cina, Indonesia, Malesia, Corea del Sud e Tailandia) e cinque dell’America Latina (Argentina, Brasile, Colombia, Messico e Venezuela) più la Turchia, in quanto la sua esperienza di sviluppo è ritenuta simile ai paesi del sud America presi in considerazione, sono stati esaminati attraverso una analisi panel regression. Il modello ha incluso sette variabili trasversali (spesa per l’istruzione, debito estero, formazione del capitale lordo, risparmio, deflazione del PIL, valore aggiunto della produzione e apertura commerciale) per un periodo di 21 anni, 1992-2012. I risultati dei test indicano che il fattore più importante che influenza la crescita economica di questi paesi è il loro debito estero, che talvolta previene o ritarda la convergenza dei redditi dei paesi debitori con quelli dei paesi ad alto reddito. La formazione del capitale lordo e il valore aggiunto del settore manifatturiero risultano anch’essi significativi, seppure in misura inferiore.

Suggested Citation

  • Karaman, Filiz & Aydogan, E. Tomris & Geyikdagi, V. Necla, 2015. "Economic Convergence: A Panel Analysis of Growth Variables in Selected Asian and Latin American Countries - Convergenza economica: un’analisi panel di variabili di crescita in una selezione di paesi a," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 68(3), pages 385-400.
  • Handle: RePEc:ris:ecoint:0759
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    References listed on IDEAS

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    1. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
    2. Steve Dowrick & J. Bradford DeLong, 2003. "Globalization and Convergence," NBER Chapters, in: Globalization in Historical Perspective, pages 191-226, National Bureau of Economic Research, Inc.
    3. repec:mtp:titles:026201761x-17 is not listed on IDEAS
    4. John Weeks, 2000. "Latin America and the 'high performing Asian economies': growth and debt," Journal of International Development, John Wiley & Sons, Ltd., vol. 12(5), pages 625-654.
    5. Dani Rodrik, 2011. "The future of economic convergence," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 13-52.
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    8. Dani Rodrik, 2012. "Do We Need to Rethink Growth Policies?," MIT Press Book Chapters, in: Blanchard, Olivier J. & Romer, David & Spence, Michael & Stiglitz, Joseph E. (ed.), In the Wake of the Crisis: Leading Economists Reassess Economic Policy, edition 1, volume 1, chapter 17, pages 111-123, The MIT Press.
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    More about this item

    Keywords

    Economic Convergence; Panel Analysis; Asia; Latin America;
    All these keywords.

    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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