Nominal and real stochastic convergence of transition economies

Kutan, Ali M.; Yigit, Taner M.

doi:10.1016/j.jce.2003.09.008

Cited by 83 publications

(54 citation statements)

References 18 publications

(19 reference statements)

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“…Equation (1) is used to run a panel unit root test. In agreement with the existing research, the convergence rate is calculated as (Kutan and Yigit, 2004). …”

Section: The Methodologysupporting

confidence: 74%

“…One key assumption underlying the LLC test is that countries share a common rate of convergence toward long run equilibrium. By contrast, Kutan and Yigit (2004) allow for disparities in the transition countries' paths to their steady states. By using the IPS test, they identify a lower degree of monetary convergence.1 This study allows all countries in the group to have different average speeds of adjustment to steady state equilibrium for all variables.…”

Section: The Methodologymentioning

confidence: 99%

“…2 Arguably, same macroeconomic variables in different countries may be correlated due to the existence of a common trend (De La Fuente, 2000). Following Kutan and Yigit (2004), we demean the data to eliminate common time components, which may cause the correlation between the error terms of longitudinal section, to obtain an independent panel data.…”

Section: The Methodologymentioning

confidence: 99%

See 2 more Smart Citations

Nominal and Real Stochastic Convergence of the BRICS Economies

Sun

2017

Review of Economic and Business Studies

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“…Equation (1) is used to run a panel unit root test. In agreement with the existing research, the convergence rate is calculated as (Kutan and Yigit, 2004). …”

Section: The Methodologysupporting

confidence: 74%

Section: The Methodologymentioning

confidence: 99%

Section: The Methodologymentioning

confidence: 99%

See 1 more Smart Citation

Nominal and Real Stochastic Convergence of the BRICS Economies

Sun

2017

Review of Economic and Business Studies

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“…Kočenda (2001), Yigit (2004, 2005), and Brada et al (2005) study not only nominal level convergence, but also real convergence. While Kočenda (2001) reports considerable real and monetary convergence, Kutan and Yigit (2004) find less convergence than Kočenda does. Kutan and Yigit (2005) observe that price and monetary convergence of the new EU members to the core EU standards is quite idiosyncratic.…”

Section: A Brief Review Of the Literaturementioning

confidence: 82%

Pilgrims to the Eurozone: How far, how fast?

2006

Self Cite

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In our analysis, we re-examine the nominal and real convergence of all recent 10 European Union (EU) members to EU standards. Testing for monetary convergence has significant implications for interim optimal exchange rate and monetary policies before a formal and permanent link to the euro, while real convergence is the ultimate objective of economic integration. Novel features of the paper include broader measures of real convergence in both euro as well as local currencies, an examination of inflation and interest rate convergence with respect to the Maastricht benchmarks, and employment of more appropriate tests of convergence allowing for structural breaks. The results indicate slow but steady per-capita real income convergence towards EU standards. On the other hand, evidence indicates significant strong inflation and interest rate convergence. Policy implications of the paper are also discussed. #

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“…Ukraine falls into a category of transition countries and therefore the analysis of papers on transition economies is more closely related to our research. Kocenda (2001) and Kutan and Yigit (2004) papers found between and interregional convergence within Central and Eastern European (CEE) economies in terms of growth rates of real output. In particular, Baltic States do converge with the highest degree in all macroeconomic fundamentals.…”

Section: Open Accessmentioning

confidence: 99%

Were Ukrainian regions too different to start interregional confrontation: economic, social and ecological convergence aspects?

Melnyk

Kubatko

2016

Economic Research-Ekonomska Istraživanja

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This article deals with analysis of economic, social and ecological disparities of Ukrainian regions. Regional economic disparities are measured through the convergence concept and the article employs panel data analysis with fixed and random effects estimations. Our empirical results show the presence of economic convergence in Ukrainian regions. Initially it was found that poor regions do grow relatively faster than the rich. Moreover, the difference between poor and rich regions has been decreased 1.8 times during 1999 and 2010. In addition, it was found that the presence of ecological convergence in the Ukraine and initially 'clean' regions do increase pollution faster than initially 'dirty' regions. That is, Ukrainian regions were converging to some environmental steady state through the process of increasing pollution. Ukrainian regions were also experiencing health convergence with negative policy implications, since all regions do converge to some health levels through an increase in morbidity. The economic growth of Ukrainian regions was achieved through sacrificing environmental situations and increased morbidity. Therefore, there were no clear economic reasons to start interregional confrontation that has taken place in the Ukraine, since all regions were on the same track of development.

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Nominal and real stochastic convergence of transition economies

Cited by 83 publications

References 18 publications

Nominal and Real Stochastic Convergence of the BRICS Economies

Nominal and Real Stochastic Convergence of the BRICS Economies

Pilgrims to the Eurozone: How far, how fast?

Were Ukrainian regions too different to start interregional confrontation: economic, social and ecological convergence aspects?

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