Income convergence dynamics in ASEAN and SAARC blocs

Solarin, Sakiru Adebola; Ahmed, Elsadig Musa; Dahalan, Jauhari

doi:10.1080/00779954.2013.874399

Cited by 11 publications

(8 citation statements)

References 34 publications

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“…Jayanthakumaran and Lee (2013), employing the Lumsdaine and Papell (1997) "two breaks" unit root test for data covering 1973-2005 rejected stochastic convergence. Solarin et al (2014), employing the Lee and Strazicich (2003) unit root test, with two endogenously dated breaks under both null and alternative hypotheses, found that only Bhutan shows evidence of stochastic convergence to the SAARC group mean.…”

Section: Previous Studiesmentioning

confidence: 99%

Growth Convergence and Divergence in SAARC

Khan¹,

Daly²

2018

REM

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<em>We test for output convergence during 1960-2017 amongst the leading member countries of the South Asian Association for Regional Cooperation (SAARC): Bangladesh, India, Nepal, Pakistan and Sri Lanka. The context is SAARC’s commitment to eventual monetary union. Existing research, using established unit root tests, finds little support for the convergence hypothesis, even when structural breaks are permitted. We use two more recently developed approaches, both of which allow greater flexibility in the depiction of convergence. The method developed by Enders and Lee (2011) allows for a smoothly evolving trend in relative per capita incomes, rather than a (possibly breaking) linear trend. The technique introduced by Phillips and Sul (2007, 2009) allows for the possibility of convergent sub-groups. Even with these more accommodating test procedures, we find minimal evidence of growth convergence within the full group of countries. We find that these countries can be allocated to two non-overlapping convergence clubs, with India and Sri Lanka enjoying the more favourable growth path. These findings raise questions regarding the current feasibility of monetary union for SAARC.</em>

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Section: Previous Studiesmentioning

confidence: 99%

Growth Convergence and Divergence in SAARC

Khan¹,

Daly²

2018

REM

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“…For instance, Ismail (2008) finds evidence of convergence for five ASEAN countries during the 1960-2004 period. Similarly, Solarin et al (2014) finds signs of convergence between 1970 and 2009. In contrast, other authors, such as Park (2000) and Alavi and Ramadan (2008), indicate no evidence of income convergence.…”

Section: Testing For Economic Convergencementioning

confidence: 86%

“…See, for instance,Chowdhury (2005); Lee (2008, 2013);Lim and McAleer (2004);Lee et al (2005);Solarin et al (2014);Rath (2019).…”

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confidence: 99%

Regional convergence and spatial dependence across subnational regions of ASEAN: Evidence from satellite nighttime light data

Méndez

Santos‐Marquez

2021

Regional Science Policy & Practice

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Satellite nighttime light data are increasingly used for evaluating the performance of economies in which official statics are non-existent, limited, or non-comparable. In this paper, we use a novel luminosity-based measure of GDP per capita to study regional convergence and spatial dependence across 274 subnational regions of the Association of South East Asian Nations (ASEAN) over the 1998-2012 period. Specifically, we first evaluate the usefulness of this new luminosity indicator in the context of ASEAN regions. Results show that almost 60 percent of the differences in (official) GDP per capita can be predicted by this luminosity-based measure of GDP. Next, given its potential usefulness for predicting regional GDP, we evaluate the spatiotemporal dynamics of regional inequality across ASEAN. Results indicate that although there is an overall (average) process of regional convergence, regional inequality within most countries has not significantly decreased. When evaluating the patterns of spatial dependence, we find increasing spatial dependence over time and stable spatial clusters (hotspots and coldspots) that are located across multiple national boundaries. Taken together, these results provide a new and more disaggregated perspective of the integration process of the ASEAN community. Keywords convergence • spatial dependence • satellite nighttime light data • luminosity • subnational regions • ASEAN JEL Classifications R10 • R11 • O57

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“…According to Krugman, "Productivity isn't everything, but, in the long run, it is almost everything" (Krugman, 1994: p. 11). Although a plethora of studies examine income convergence (e.g., Lim and McAleer, 2004;Khorshed, 2005;Jayanthakumaran and Verma, 2008;Masron and Yusop, 2008;Wang, 2012;Solarin et al, 2014) and find mixed evidence, to best of our knowledge, none investigate TFP convergence in the ASEAN context. Examination of income convergence among countries tells us whether and how quickly a poor country can catch up to a rich country in terms of per capita income, but it does not necessarily indicate whether the convergence process is due to an increase in productivity or the accumulation of the factors of several inputs.…”

Section: Introductionmentioning

confidence: 96%

Does Total Factor Productivity Converge Among Asean Countries?

Rath¹

2019

BEMP

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This paper examines the productivity convergence of the five original Association ofSoutheast Asian Nations (ASEAN) countries, namely Indonesia, Malaysia, Philippines,Singapore, and Thailand (ASEAN-5), using annual data spanning the period 1968to 2014. Results from two-break Lagrange multiplier and residual augmented leastsquares Lagrange multiplier unit root tests reveal strong evidence of productivityconvergence in case of ASEAN-5. Further, the results based on Phillips–Sul panelclub convergence also reveal productivity convergence. To check the robustness ofour finding, we use an alternative measure of total factor productivity and still findevidence of convergence. We infer that such productivity improvements may helpASEAN countries to achieve a higher pace of economic growth.

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Income convergence dynamics in ASEAN and SAARC blocs

Cited by 11 publications

References 34 publications

Growth Convergence and Divergence in SAARC

Growth Convergence and Divergence in SAARC

Regional convergence and spatial dependence across subnational regions of ASEAN: Evidence from satellite nighttime light data

Does Total Factor Productivity Converge Among Asean Countries?

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