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Convergence of Human Development Levels

In: Proceedings of the Conference on Human and Economic Resources

Author

Listed:
  • 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.

Suggested Citation

  • Fuat Erdal & Emre Can & Gaye Kocabas, 2006. "Convergence of Human Development Levels," Papers of the Annual IUE-SUNY Cortland Conference in Economics,in: Proceedings of the Conference on Human and Economic Resources, pages 207-212 Izmir University of Economics.
  • Handle: RePEc:izm:prcdng:200618
    as

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    File URL: http://eco.ieu.edu.tr/wp-content/proceedings/2006/0618.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 407-443.
    3. Paul Cheshire, 2000. "Endogenous Processes in European Regional Growth: Convergence and Policy," Growth and Change, Wiley Blackwell, vol. 31(4), pages 455-479.
    4. Drennan, Matthew P. & Lobo, Jose, 1999. "A Simple Test for Convergence of Metropolitan Income in the United States," Journal of Urban Economics, Elsevier, vol. 46(3), pages 350-359, November.
    5. Bairam, Erkin I. & McRae, Shaun D., 1999. "Testing the convergence hypothesis: a new approach," Economics Letters, Elsevier, vol. 64(3), pages 351-355, September.
    6. 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.
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    Keywords

    convergence; human development; Turkey;

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