Testing club convergence of economies by using a Broad-Based Development Index

Basel, Sayel; Gopakumar, K.; Rao, R. Prabhakara

doi:10.1007/s10708-020-10198-0

Cited by 10 publications

(4 citation statements)

References 52 publications

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“…The household welfare index consists of five variables. Weights from Principal Component Analysis (PCA) are used to combine these indicators Basel et al (2021) (Basel et al, 2020).…”

Section: Methodsmentioning

confidence: 99%

Testing Club Convergence across Pakistan’s Districts by Using a Household Welfare Index

Ahmed,

Iqbal,

Muhammad Kasi

et al. 2023

QJSS

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The study of club convergence has taken center stage in the literature on economic growth and development over the last three decades. GDP per capita has usually been employed as a proxy for the measurement of national welfare in studies of convergence in living standards across regions.The analysis is based on an augmented household welfare index for measuring household living standards through convergence and the clustering techniqueproposed by Phillips and Sul (2007). The index is composed of five indicators of household welfare. Using principal component analysis, the indicators are aggregated to get a final household welfare index.Overall, the findings of the studyreject the hypothesis that all districts of Pakistan converge to a unique equilibrium stateregarding the household welfare index. When club convergence was tested, five convergence clubs and one group of divergent districts were discovered.The findings show that there is not a uniform living standard across all districts, and thus, policies need to be designed to lessen these spatial disparities.

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“…The household welfare index consists of five variables. Weights from Principal Component Analysis (PCA) are used to combine these indicators Basel et al (2021) (Basel et al, 2020).…”

Section: Methodsmentioning

confidence: 99%

Testing Club Convergence across Pakistan’s Districts by Using a Household Welfare Index

Ahmed,

Iqbal,

Muhammad Kasi

et al. 2023

QJSS

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“…These processes are challenging worldwide [36], but they pose particular difficulties in African countries [37]. Often, the different countries converge at distinct speeds and follow diverse patterns, creating clubs of convergence [38], dependent on several factors [39]. This is also true for the regional convergence inside the countries [40], such as Poland [41] and the Russian Federation [42].…”

Section: Literature Reviewmentioning

confidence: 99%

Evidence of Global Convergence: Perspectives for Economic and Territory Planning in Times of the COVID-19 Pandemic

Martinho

2023

Land

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Governments and international organizations have implemented efforts to promote the convergence of socioeconomic indicators between countries. The structural funds adopted by the European Union institutions are examples of policy instruments implemented to promote convergence in the GDP (gross domestic product) among the member states. Nonetheless, these policy measures are dependent on several internal and external factors, making these efforts vulnerable to exogenous shocks such as those associated with the global financial crisis and the COVID-19 pandemic. From this perspective, this research aims to analyze the convergence trends over the last few years and assess the respective implications of the pandemic on this framework. For that, statistical information from the World Bank for the GDP per capita was considered for the period 2006–2021 for all countries and organized for each group of levels of income and each world region. These data were analyzed through panel data approaches, considering the developments in convergence theory. The results show that the signs of convergence are different for each level of income and each region, highlighting the idea of clubs of convergence. On the other hand, the pandemic disturbed the trends of convergence verified worldwide, but nonetheless, it seems to be on a smaller scale than the global financial crisis. In any case, these findings should be confirmed in future research with more recent data.

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“…Each of the sub-indices is based on five indicators. The indicators are aggregated through weights obtained from Principal Component Analysis (PCA) (Basel et al, 2020). Data for these indicators at the district level is collected from six PSLM Surveys.…”

Section: Variables Description and Data Sourcementioning

confidence: 99%

“…Basel et al (2020) analyze the convergence club based on the augmented index for measuring development across 102 economies. The index is composed of seven major development indicators: education, health, energy use, access to water and sanitation, environment, living standard, and good governance.…”

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confidence: 99%

Convergence in Human Development across Districts of Pakistan: Evidence from Club Convergence Test

Ahmed¹

2021

PSSR

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Studies on the convergence club have become a focal point in economic growth and development literature over the last three decades. This paper analyzes the club convergence hypothesis going beyond the traditional use of GDP per capita. It examines the convergence club of 97 Pakistani districts over the period 2004-20015. The analysis is based on an augmented index for measuring development through convergence and the clustering method of Phillips and Sul (2007). The index consists of 3 sub-indices of education, health, and household welfare level, with each index further composed of 5 indicators. The Principal Component Analysis (PCA) is used to aggregate these indicators to get sub-indices and a final development index.Results of the study indicate that the districts do not converge to the same long-run equilibrium. Instead of overall convergence, we find eleven convergence clubs and one non-convergent group for human development. The existence of clubs means that measures aimed at reducing disparities in human development and promoting regional growth should consider the specific characteristics revealed in the convergence analyses. Spatial differences thus need to be addressed mainly through pro-poor regional policies.

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Testing club convergence of economies by using a Broad-Based Development Index

Cited by 10 publications

References 52 publications

Testing Club Convergence across Pakistan’s Districts by Using a Household Welfare Index

Testing Club Convergence across Pakistan’s Districts by Using a Household Welfare Index

Evidence of Global Convergence: Perspectives for Economic and Territory Planning in Times of the COVID-19 Pandemic

Convergence in Human Development across Districts of Pakistan: Evidence from Club Convergence Test

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