Mining patterns of transitional growth using multivariate concept-based models

Abstract

The relationship between income and growth rates has been an elementary problem of research on economic convergence. In the present paper, we study growth-income paths in a new perspective. We assess the similarities of transitional growth trajectories with the use of novel concept-based model. Further, we group economies on the basis of the assessed similarities and we evaluate within-group growth-income relationships. The obtained results point to distinct patterns of development, which help to understand the puzzles of absolute convergence and divergence. Among others, we find evidence of a humped-shaped path of long-run transitional growth. Simultaneously, we identify countries which got stuck in poverty and in the middle-income trap.

Detecting Regimes of Economic Growth With Fuzzy Concept-Based Models

“…In our previous work, we have already delivered one particular adaptation of the original concept-based model to economics. The mentioned study by Bartak and Jastrzebska [9] targeted the discussion on evaluating the similarity of transitional growth. The model presented in the current paper differs from [9] in several ways:…”

“…The mentioned study by Bartak and Jastrzebska [9] targeted the discussion on evaluating the similarity of transitional growth. The model presented in the current paper differs from [9] in several ways:…”

“…• It applies the proposed procedure to a multi-dimensional problem, whereas in [9], the model was applied to two dimensions.…”

“…The proposed method is a fusion between soft and crisp computing technologies. The proposed approach is a continuation of our research on imprecise knowledge representation schemes applied to model temporal data addressed in [8] and [9].…”