IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/23739.html
   My bibliography  Save this paper

Income Convergence Hypothesis: A Regional Comparison of selected East and South Asian Economies

Author

Listed:
  • Haider, Adnan
  • Hameed, Shahzad
  • Wajid, Abdul

Abstract

The empirical literature on income convergence hypothesis is available for almost all developed or industrialized countries. However, regarding developing economies especially, South Asian region few studies attempted it in their convergence related empirical analysis. Therefore, the central objective of this paper is to empirically examine whether or not income convergence is occurring over time in South Asian economies. Furthermore, within Asian block, the study also compares the convergence results of South Asian economies with its parallel East Asian region. The empirical analysis test both absolute convergence hypothesis (using beta and sigma convergence methodologies as well as Theil’s inequality based approach) and conditional convergence hypothesis (by taking care of relevant control variables). These convergence tests are based on conventional regression equation approach by taking real GDP per capita with some explanatory control variables. Both steps employ the pooled cross-section, time series data set, which provides new insights in the convergence tests for real GDP per capita. Although, empirical analysis of this paper is unable to finds any evidence to accept the null hypothesis of the presence of absolute income convergence. However, our results show the presence of conditional income convergence for both East and South Asian economies. It indicates that income gap between these two groups of economies has narrow down conditional based on some common characteristics but it still remains quite large.

Suggested Citation

  • Haider, Adnan & Hameed, Shahzad & Wajid, Abdul, 2010. "Income Convergence Hypothesis: A Regional Comparison of selected East and South Asian Economies," MPRA Paper 23739, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:23739
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/23739/1/MPRA_paper_23739.pdf
    File Function: original version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/29982/2/MPRA_paper_29982.pdf
    File Function: revised version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Evans, George W. & Honkapohja, Seppo, 1999. "Learning dynamics," Handbook of Macroeconomics,in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 7, pages 449-542 Elsevier.
    2. Eatzaz Ahmad & Amber Naz, 2000. "An Empirical Analysis of Convergence Hypothesis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 729-740.
    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. Krasnopjorovs, Olegs, 2013. "Latvijas ekonomikas izaugsmi noteicošie faktori
      [Factors of Economic Growth in Latvia]
      ," MPRA Paper 47550, University Library of Munich, Germany.
    2. Kutub Uddin & Zohurul Anis & Muhammad Jakir Hossain & Zohurul Islam Shamol, 2016. "Examining Convergence in Per Capita Agricultural Production across Selected Asian countries," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 6(10), pages 178-194, October.
    3. Zaenal Mutaqin & Masaru Ichihashi, 2012. "The Role of Maastricht Criteria and Membership in Determining Convergence in the Eurozone and ASEAN: A Panel Data Analysis," IDEC DP2 Series 2-7, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).

    More about this item

    Keywords

    absolute convergence; conditional convergence; Asian economies; growth theory;

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - 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:23739. 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.