IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/11563.html
   My bibliography  Save this paper

Income convergence of divergence? Study on selected Muslim countries

Author

Listed:
  • Duasa, Jarita

Abstract

In this paper, the existence of income convergence or income divergence is investigated on ten selected OIC (the Organisation of Islamic Conference) economies. The results are then linked to the degree of openness of the countries using globalization indices. In order to investigate the existence of either income convergence or divergence between selected Islamic countries, income differentials between selected OIC countries and the benchmark country are computed and a series of test is done. The tests include stationary linearity test using Augmented Dickey-Fuller (ADF) test for linear time-series and non-linear stationary test using Kapetanois et al. (KSS) tests for non-linear time series. The findings are that most of the countries experience income divergence except for three countries. By analyzing the degree of globalization in these economies, it is found that the results support the endogeneous theory and depending approach which predict that globalization is likely to cause income divergence (inequality) rather than convergence (equality)

Suggested Citation

  • Duasa, Jarita, 2008. "Income convergence of divergence? Study on selected Muslim countries," MPRA Paper 11563, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:11563
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/11563/1/MPRA_paper_11563.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Kevin H. O'Rourke, 2002. "Globalization and Inequality: Historical Trends," Aussenwirtschaft, University of St. Gallen, School of Economics and Political Science, Swiss Institute for International Economics and Applied Economics Research, vol. 57(01), pages 65-104, March.
    2. Kapetanios, George & Shin, Yongcheol & Snell, Andy, 2003. "Testing for a unit root in the nonlinear STAR framework," Journal of Econometrics, Elsevier, vol. 112(2), pages 359-379, February.
    3. repec:ebl:ecbull:v:15:y:2005:i:1:p:1-7 is not listed on IDEAS
    4. Venus Khim-Sen Liew & Kian-Ping Lim, 2005. "Income Divergence? Evidence of Non-linearity in the East Asian Economies," Economics Bulletin, AccessEcon, vol. 15(1), pages 1-7.
    5. Pierre-Richard Agénor, 2004. "Does globalization hurt the poor?," International Economics and Economic Policy, Springer, vol. 1(1), pages 21-51, March.
    6. Helmut Hofer & Andreas Worgotter, 1997. "Regional Per Capita Income Convergence in Austria," Regional Studies, Taylor & Francis Journals, vol. 31(1), pages 1-12.
    7. Taylor, Mark P. & Peel, David A., 2000. "Nonlinear adjustment, long-run equilibrium and exchange rate fundamentals," Journal of International Money and Finance, Elsevier, vol. 19(1), pages 33-53, February.
    8. Li, Qing & Papell, David, 1999. "Convergence of international output Time series evidence for 16 OECD countries," International Review of Economics & Finance, Elsevier, vol. 8(3), pages 267-280, September.
    9. Dirk Te Velde, 2001. "Balance of payments prospects in EMU," National Institute of Economic and Social Research (NIESR) Discussion Papers 178, National Institute of Economic and Social Research.
    10. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650592, January.
    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. Najeh AISSAOUI, 2017. "ICT and growth gap between nations: Evidence from MENA region," E3 Journal of Business Management and Economics., E3 Journals, vol. 8(1), pages 026-037.

    More about this item

    Keywords

    Income convergence; globalization; linear stationary test; non-linear stationary test;

    JEL classification:

    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:pra:mprapa:11563. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.