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Copyright of Regional Science Policy & Practice is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper examines whether the Internet is a determining factor in explaining economic growth and convergence across countries when it acts as a channel of information and knowledge diffusion. Literature has identified around 140 possible growth factors, therefore given the contradictory results obtained from previous empirical studies it is crucial we understand the actual role of the Internet. Using the conditional convergence theory and a Bayesian panel data model averaging method from a sample of 100 countries between 1994 and 2017, our results demonstrate that an increase in access to the Internet is a non-determinant factor in economic convergence, being its probability of inclusion in the true growth model conditioned by the regressors included in the estimates and the time span analysed. [ABSTRACT FROM AUTHOR]

During the Golden Age (1950–1973), Portugal stood out in the international scene, converging economically with the group of more industrialised economies. In this paper, we start by analysing the main factors that explain the extraordinary economic performance of Portugal during that crucial period of its history. Next, we construct and estimate a dynamic model to quantify the relationship between those factors and the Portuguese economic growth in the time horizon that stretches from the Golden Age to present days. The results obtained show that investment and international trade have been contributing positively to economic growth of Portugal in the last decades, 1950–2018. The conclusions of this paper, which are in line with the international literature, reinforce the importance for Portuguese decision-makers to adopt political measures to open the economy and to create favourable conditions for investment in order to obtain a faster economic growth that allows a robust convergence with the most industrialized nations. [ABSTRACT FROM AUTHOR]

Tourism significantly increased in the EU-28 in recent years. In the present study, the 28 member states were analysed for the period between 2012 and 2018, depending on data availability. The authors tested empirically whether economic convergence took place from the perspective of three types of revenue from the tourism sector. The contribution of tourism revenue to economic growth varied across different countries. The analysis of β and σ-convergence showed a low-intensity and slow process based on the revenues generated by accommodation, transport, and restaurant and coffee shop services. Contrary to expectations, the factors analysed did not strongly support the EU-28 tourism sector convergence. We argue the existence of a positive and direct relationship between tourism and economic growth. The convergence did exist but its pace was sometimes slow and of low intensity, preceded by periods of divergence. The three types of services generated tourism revenue but not decisively. The paper complements the literature using indicators that strictly describe the tourism sector and brings into focus findings that contradict those from other studies. Our conclusion is that convergence was not accelerated, but slow and it was not determined by tourism factors but by related ones. [ABSTRACT FROM AUTHOR]

The Balkan countries undergoing the transition must advance their economies to be more competitive. The aim of this paper is to analyse economic growth with a primary focus on the analysis of economic convergence in the Balkan region in the period of 1997-2020. The research analyses the following Balkan economies: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Montenegro, North Macedonia, Romania, Serbia, and Slovenia. This study applies Gross Domestic Product (GDP) as a measure of economic growth and is based on the neoclassical economic growth model: the Solow's convergence concept. The results show that the Balkan countries experienced economic convergence with a speed of 1.82% in the cross-sectional model and 7.87% in the panel data model. It means that the initially less developed economies noted higher economic growth than those richer. [ABSTRACT FROM AUTHOR]

This paper estimates the impact of public investment on regional economic growth and convergence at the NUTS 3 level in Greece. Using a new database of public expenditure per region for the period 1978-2007, it proposes a model which captures not just the impact of public investment in Greek prefectures, but also the spillover effects related to the existence of externalities from neighbouring regions. The results point to a positive long-run impact of public investment per capita on regional economic growth - but not on convergence - which also generates considerable spillover effects. However, the returns vary according to different types of public investment, with education and infrastructure spillovers having the highest impact. In general, public investment externalities seem to be more relevant for regional growth than direct public investment in each region. Finally, the impact of different types of public investment in Greece is mediated by politics and political factors, but the effect of politics disappears once we control for political-period-specific spatial-invariant variables. Resumen Este artículo estima el impacto de la inversión pública en el crecimiento económico regional y la convergencia a nivel NUTS 3 en Grecia. Haciendo uso de una nueva base de datos de gasto público por región para el periodo 1978-2007, se propone un modelo que identifica no solamente el impacto de la inversión pública en las prefecturas griegas, sino también los efectos de spillover relacionados con la existencia de externalidades procedentes de regiones vecinas. Los resultados apuntan a un impacto positivo a largo plazo de la inversión pública per cápita en el crecimiento económico regional - pero no en la convergencia - el cual genera unos efectos de spillover considerables. Sin embargo, los retornos varían de acuerdo con los diferentes tipos de inversión pública, siendo la educación y los spillovers de infraestructura los de mayor impacto. En general, las externalidades de inversión pública parecen tener una mayor relevancia para el crecimiento regional que la inversión pública directa en cada región. Para terminar, el impacto de los diferentes tipos de inversión pública en Grecia se ve influido por sus políticas y otros factores políticos, pero el efecto de las políticas desaparece una vez que se controlan las variables espacialmente-invariantes de tipo político ligadas a un periodo específico. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Economía (Universidad Autónoma de Yucatán) is the property of Universidad Autonoma de Yucatan, Facultad de Economia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of the paper is to analyze economic convergence of the Western Balkan countries towards the European Union member states with two types of measurement methodology, sigma and beta convergence. Sigma convergence measures the dispersion of real per capita GDP among the countries and beta convergence is based on the neoclassical growth theory. The main hypothesis of the paper is that the recent financial crisis has negatively affected the convergence process of the Western Balkan countries towards the twenty-eight member states of the European Union (EU-28). The relationship between selected macroeconomic variables and the rate of per capita GDP growth are econometrically tested. Sigma and beta convergence are estimated for the period 2004-2013 and two sub-periods: 2004-2008 and 2009-2013. The empirical findings support the hypothesis of economic convergence. The negative effects of the crisis on per capita GDP growth are confirmed, resulting in a slower convergence process. Dissimilarities between the growth patterns of the analyzed groups show the considerable heterogeneity of growth, i.e. the convergence clubs. [ABSTRACT FROM AUTHOR]

Research background: The processes of economic convergence observed in many developing countries are characterized by reduction of economic differences on the cross-country level, which are accompanied by growing internal economic inequalities. This may stem from the fact that in the catching-up countries, a more dynamic growth pattern is observed in the economically strongest regions, which is initially reflected in spatial polarization and increasing regional inequalities. However, just as the countries reach higher levels of development, the diffusion of growth-inducing impulses to less-developed areas should lead to the spatial equalizing of the development levels and reducing regional inequalities. Purpose of the article: The aim of the paper is to determine the relationship between the level of economic growth and observed economic inequalities in Central and Eastern European (CEE) countries. The theoretical framework adopted to describe and explain those relations is the so-called Williamson's hypothesis in which the relationship between the scale of regional inequalities and economic growth is illustrated by a curve shaped like an inverted U. Methods: The research procedure was intended to verify Williamson's hypothesis by estimating parabolic econometric models. Indicators of economic growth along with measure of regional inequalities (Williamson's coefficient of variation) were used in the regression modeling. The research period spanned the years 1995-2014. Findings & Value added: In the light of the study of CEE countries, it was possible to observe both convergence symptoms as well as divergence tendencies. It can be thus stated that the analyzed CEE countries followed a similar path to the one observed earlier by Williamson in other developing countries. However, the analyses conducted by the authors at the national and regional levels of CEE countries were equivocal and did not fully support the theoretical assumptions of Williamson's hypothesis. [ABSTRACT FROM AUTHOR]

The reconstruction of the economic history of Brazil since independence from Portugal (1822) may lead to a new understanding of its economic growth. The deep-rooted idea that Brazil could have done better means there is a need to delve into each phase of its development. In this paper, we provide a very long-run perspective (1822-2019) of Brazil's economic growth and process of real convergence. On the one hand, this review indicates that structural changes observed in the middle of the 20th century were crucial in promoting the country's growth and real convergence with technologically advanced countries. On the other hand, poor institutional conditions and deficient human capital formation have emerged since colonial times as critical factors underlying Brazil's inability to establish robust and sustainable economic growth. [ABSTRACT FROM AUTHOR]

We analysed the empirical importance of the capital flows in processes of economic convergence of the CEE region. We depart from reference net measures of capital flow reflecting the level of development of the financial system and focus on gross capital flow. Our econometric model is based on Seemingly Unrelated Regression Equation (SURE) elaborated by Arnold Zellner. This environment seems an alternative to standard panel regression, because it enables cross-country heterogeneity of parameters of interest (like pace of convergence). We tested several restrictions of the unconstrained SURE model, leading to simpler specifications that would allow for regional homogeneity of the role of a particular factor (like capital flows) in growth fluctuations and β-type convergence. [ABSTRACT FROM AUTHOR]

South-East European (SEE) countries are experiencing high emigration, resulting in a significant increase in remittance inflows, exceeding FDI flows. Today the most important challenge facing SEE countries is how to grow at a higher speed to achieve faster economic convergence with the EU. The objective of the paper is to empirically examine the relevance of remittances as a factor of economic growth, using quarterly balanced panel data set of six SEE countries: Albania, Bosnia and Herzegovina, Croatia, Montenegro, the Republic of North Macedonia, and Serbia (SEE6) over 2008q1-2020q2. Panel regression with the fixed-effects model is employed to account for potential cross-section heterogeneity. This study provides original econometric evidence that remittances have a significant positive impact on economic growth in our panel of SEE6. Those results will be useful both to scholars and policymakers in the process of the creation of policies that will direct remittances into investments in the economy. [ABSTRACT FROM AUTHOR]

We test for economic convergence in GDP per capita and consumption per capita within two distinct sets of countries: those with significant (and plausibly exogenous) fossil fuel (FF) endowments and those without such endowments. Among countries with FF endowments, we find evidence of both absolute and conditional convergence across both macroeconomic dimensions, as indicated by standard β- and σ-convergence tests. By contrast, we do not find robust evidence of convergence among countries without FF endowments. This pattern—convergence among FF-endowed and non-convergence among non-endowed countries—is robust to changes in the sample period, controlling for potential resource curse effects, and is largely consistent across growth components. We discuss the implications for economic development and comment on its implications for global decarbonization policies. [ABSTRACT FROM AUTHOR]

Following rapid economic growth, the environmental pollution is getting worse in most regions in China. Meanwhile, the urbanization and industrialization of China has not completed yet, with energy consumption continuing to grow, environmental carrying capacity is becoming smaller and smaller, which leads to emission reduction cost continues to grow. This paper analysed convergence of economic growth and carbon emission intensity of the east, central and west regions in China by using panel date, and the results show that economic growth is β conditional convergence while carbon emissions intensity is β absolute convergence. By building relation model between carbon emission intensity gap and economic gap, introducing in elastic coefficient n, it was found that when the central and west regions narrow their economic gap with the east region by 1 percent, it leads to their carbon emission intensity gap with the east region narrow by 0.5712 and 0.5900 percent respectively, which shows that when the central and west regions are narrowing their economic gap with the east region, 'the narrowing' is based on energy-saving and emission-reduction. At the same time it can also be found that convergent rating of economy is quicker than that of carbon emission intensity, which suggests that energy-saving and emission-reduction is still what China need to follow when promoting balanced development of regional economy. Based on the above results, some useful suggestions to promote collaborative development of regional economy and synchronous collaborative development between regional carbon emission intensity and economic development were given. [ABSTRACT FROM AUTHOR]

With initial low levels of income per capita, a declining population and relatively modest economic growth rates, there are little prospects of diminishing the gap between Romania and the EU countries. Nevertheless, in the long term, convergence is expected. The question then arises, "What are the drivers and their likely potential to boost economic growth and the catching-up process?". This paper presents shortly the theoretical background of economic convergence and then focuses on the assessment of possible paths of Romania's convergence towards the EU. Based on the existing long-term macroeconomic projections and the assessment of the possible future developments of the drivers of economic growth, we have built three scenarios of economic convergence, highlighting the possible timespan of convergence. We have employed growth accounting methods to decompose output growth rate into production factors' contributions (capital and labour) and total factor productivity. [ABSTRACT FROM AUTHOR]

This paper reviews catch-up growth in various parts of the world, especially in the twentieth century, with a particular focus on what this implies for the Global South. In 1950, US per capita national income, adjusted for purchasing power, was nearly five times the world average. Since then, Western Europe and Japan have closed their per capita income gaps with the USA. East Asia, South Asia and some other developing countries have also started to close their gaps with the West in recent decades. Thus, after well over a century of growing international economic disparities or divergence, the world has witnessed an era of uneven catching up with the North in parts of the South since the mid-twentieth century. [ABSTRACT FROM AUTHOR]

Theoretical background: The concept of the economic convergence process is one of the conclusions of neoclassical growth models, especially the Solow–Swan model. According to it, it is possible to catch up with countries with a lower level of economic development to the economic level of developed countries and to finally equalize the economies of countries. However, endogenous economic theories have indicated that economic convergence is not the only realistic scenario of economic development in the modern economy. Purpose of the article: The aim of the research is to determine the degree of beta and sigma economic convergence of the countries of Central and Eastern Europe to the EU-12 in the years 2004–2021. Research methods: Descriptive statistics and regression analysis were used in the research. The regression analysis was based on a beta and sigma convergence study. The first one was aimed at checking whether less developed countries are characterized by a faster rate of economic growth than more developed states, while sigma convergence made it possible to check whether dispersion in the level of socio-economic development in selected countries was levelled in the years 2004–2021. Main findings: According to the results of the research, it is possible to confirm the existence of beta convergence of the CEE countries compared to the EU-12 in terms of economic prosperity, taking into account the average wealth of citizens (GDP per capita). The economic measure, which is key in the study of economic convergence, is the basis for stating that in the years 2004–2021, there was a process of convergence between the groups of the surveyed EU countries. On the other hand, no reduction in the economic differentiation of the countries studied was observed based on the sigma convergence study. [ABSTRACT FROM AUTHOR]

In the last years a central issue in regional economic growth debate is represented by the convergence problem. Many empirical economists have noticed that per-worker GDP of poor regions tend to converge to those of richer regions. However more recently it has been observed that the economic convergence might not be achieved if, in the empirical analysis, we consider the entire data set as one sample. The phenomenon should be analyzed considering regions as belonging to different sub-samples with quite similar economy. Many authors refer to this hypothesis as economic convergence clubs. The definition of these homogeneous groups represents a crucial issue in many regional economic growth studies. The aim of this paper is to propose a method for the identification of convergence clubs for the European regions at NUTS 2 level. The econometric specification used is based on the classical, and spatial augmented version of the conditional β-convergence model. Two different optimization algorithms for the identification of convergence clubs are proposed and compared: Simulated Annealing and Iterated Conditional Modes. [ABSTRACT FROM AUTHOR]

Over the past two decades, the issue of regional convergence in the European Union has been the subject of a wide range of empirical research. This paper aims to provide more information on the differences in regional growth patterns of new member states (NMS), as well as Croatia, in addition to the factors influencing regional disparities within each country. This research provides an analysis of regional convergence in the period 2001-2008 at the NUTS II and NUTS III level. The most widely used model for testing convergence hypotheses is beta-convergence analysis. Other factors commonly included in the econometric modelling of convergence are demographic variables, labour market conditions, industrial structure, institutional factors and overall government policy. The main hypothesis is that the process of regional convergence in NMS and Croatia is not strong enough to dominate over other factors, influencing regional potential growth (mainly industry structure and quality of human capital). Absolute β-convergence can be found at the national level for EU countries. Convergence also can be found for NMS regions, but the pace of convergence on the regional level is lower in comparison to the national level and the estimated β-convergence parameter is less significant. [ABSTRACT FROM AUTHOR]

Based on the theoretical framework of the Solow growth model, this paper employs a dynamic panel data approach to examine the impact of openness on growth and convergence in labor productivity in the Chinese provinces during the period 1984-2008. The study finds that regional openness has a significantly positive effect on regional growth in labor productivity in the Chinese provinces. When regional heterogeneity and regional openness are accounted for, the study finds fast conditional convergence in labor productivity across the Chinese provinces. As a byproduct, this study also estimates the structural parameters of the aggregate production function in the case of China. In sum, the major findings of this study lend strong support to the claim that openness promotes growth of labor productivity in China. [ABSTRACT FROM AUTHOR]

Schumpeterian growth theory stresses the role of structural change in long run growth. Countries which increase the share of technology-intensive sectors in their economic structures benefit more from technological learning and innovation. In addition, they are more able to respond to changes in the international markets and to compete in sectors whose demand grows at higher rates. The paper compares Brazil (and to a lesser extent the CIBS group of countries) from the point of view of the direction and intensity of structural change. It is suggested that structural change has been relatively weak in Brazil and that this has been associated with a less dynamic growth performance since the 1980s. [ABSTRACT FROM AUTHOR]

We compare a set of econometric studies that measure the effect of net internal migration in neoclassical models of long-run real income convergence and derive 67 comparable effect sizes. The precision-weighted estimate of beta convergence is about 2.7 per cent. An increase of one percentage point in the net migration rate of a region increases the per capita income growth rate in that region on average by about 0.1 percentage points. Introducing a net migration variable in a growth regression increases the estimate of beta convergence slightly. Studies that use panel models or IV estimation methods yield smaller coefficients of net migration in growth regressions, while the opposite holds for regressions controlling for high-skilled migration. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Latin American Studies is the property of Cambridge University Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Studies in economic growth have focused on the convergence hypothesis for regions, territories and groups of countries. The main idea is that on the long run, the poorer regions would catch up to the richer in terms of Gross Domestic Product Per Capita. This paper analyses the economic convergence in the Organization of Petroleum Exporting Countries (OPEC), not considered in studies related to the organization, which offers an expanded view on the matter. Utilizing an estimation and panel data analysis for the period 1970-2017, it indicates whether the gaps between countries belonging to the block have tended to be reduced or widened, and for this, an econometric model based on the literature is developed, with different equations, periods, variables and set of countries within the OPEC. The results mainly show convergence and the formation of convergence clubs between these economies, and a growth dynamic determined by human capital and physical capital. [ABSTRACT FROM AUTHOR]

Competitiveness on a small and large scale is necessary for growth. A definitive link between the level of competitiveness and growth has been difficult to prove. One of the primary objectives of economic planning is to promote price and exchange rate stability. Entrepreneurialism and productivity also increase the country's export competitiveness. The aim of this study is to test for the convergence in competitiveness and convergence club existence in selected economies. No previous research had tested for convergence in competitiveness using a nonlinear timevarying factor model. This paper provides an overview on convergence in competitiveness and convergence clubs' existence for 42 countries using quarterly data from 1994q1 to 2020q4 testing on competitiveness. Convergence log (t) test results show differences in competitiveness between classified convergence clubs. Russia, Brazil, and Turkey are the clubs (groups of countries) that show a transitional path (convergence in competitiveness) that differs entirely from the rest of the sample. Countries with more natural resources and exogenous monetary policies follow a unique development path to competitiveness. We find no evidence of divergence in countries within the clubs. However, we find a club (group of countries) following a clear divergence path from the other countries (Russia, Brazil, and Turkey). Our findings could potentially explain the increase in divergence in competitiveness across countries after the financial crisis of 2008. [ABSTRACT FROM AUTHOR]

The aim of the present study is to design a bipolar model of economic growth with investment flows between two types of economies (conventionally referred to as relatively rich economies and relatively poor economies). Therefore in the following considerations it is assumed that the process of capital accumulation depends on investments undertaken in the economy. At the same time the Solow growth model takes into account only investments financed by domestic savings, whereas in the bipolar growth model also the investment flows between rich and poor economies are considered. It is assumed that both relatively rich economies are investing in the relatively poor economies and the poor economies make investments in the rich economies. The paper analyses the long-term equilibrium of the growth model, both in terms of existence of steady states of the system of differential equations and in terms of the stability of a non-trivial steady state. What is more economic characteristics of the point of the long-term equilibrium of the model are examined, model parameters are calibrated and growth paths of basic macroeconomic variables in selected variants of numerical simulations are presented. [ABSTRACT FROM AUTHOR]

Given that the studies conducted so far reveal a wide range of conflicting results concerning the potential transmission channels of income inequality, the following questions arise: Is there a ß-convergence process at the European level that is influenced by financial and social inequalities? What is the relationship between economic growth and inequality in Romania and other emerging Eastern European countries, given that there is mixed evidence in the literature? Therefore, in carrying out this research, we aim to assess the specificity of the economic growth-income inequality nexus in 5 ex-communist CEE states over the period 2010-2019 using spatial econometric techniques. On one hand, the main results support the existence of a ß-convergence process in Europe that is conditioned by absolute poverty phenomena. This argues for considering poverty as an additional channel that may hamper the economic performance of EU members. On the other hand, our findings reveal a predominantly negative relationship between variables that is determined by variations in the initial income level and the degree of poverty. Additionally, by conducting sub-national analyses, we observe that, in Romania, the growth-poverty-inequality triangle is influenced by severe socioeconomic disparities. From a policy perspective, economic growth can be a useful instrument in reducing regional poverty in Romania if it is supported by consistent increases in the population's revenues (i.e. the case of North-West and Centre regions), while a higher pace of income growth compared to the regional productivity growth rate tends to foster future rises in poverty. [ABSTRACT FROM AUTHOR]

This paper introduces new data on state-level physical capital by sector and land in the farm sector for the states of the United States from 1840 to 2000. These data are incorporated into aggregate accounting exercises with the aim of comparing cross-state results to those found in cross-country samples. Our aggregate results agree closely with the cross-country literature: input accumulation accounts for most of output growth, between three-fifths and three-quarters, but variation in the growth of TFP accounts for about three-quarters of the variation in the growth rate of output per worker. In convergence accounting, convergence of log TFP accounts for about seventy percent of the observed convergence in log output per worker. [ABSTRACT FROM AUTHOR]

This paper aims to model the convergence of economic development of Albania within the Western Balkans and in the context of European integration aspirations of the region. The conclusion of this paper is that the Balkan countries have converged among themselves and toward European Union (EU). But the speed of the convergence is moderated with the hit of global crisis and the recovery still seems difficult to the rate of pre-crisis. As economies in transition that are attempting to converge with the European development stages, the economies of the Balkan countries have to go through structural evolutions that are similar among countries. The variables used in this study are the income per capita, growth rate, sector contribution to GDP growth and the added value per worker in agriculture. The data is measured for the period from 1995 to 2015 in order to establish a substantial data series for trend analysis and understanding if countries in the study are converging or diverging with EU in terms of their income and economies profile. The issue of the productivity and further specialization of their output by using their advantages in resources comes into question.

Copyright of Lecturas de Economia is the property of Universidad de Antioquia, Facultad de Ciencias Economicas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper analyzes the convergence hypothesis and the impact of social policy on the economic growth of the six largest countries in Latin America between 1980 and 2010. Results suggest that social public policies have positively influenced growth in these economies. Particularly, there are non-observed variables (fixed effects) that positively affect the economic growth in Venezuela and Chile; however, there are other non-observed variables that may be negatively affecting growth in Brazil and Mexico. Regarding the convergence hypothesis, results reveal that the speed of convergence diminishes as real income rises, implying that these countries might be converging to their stable states. [ABSTRACT FROM AUTHOR]

Convergence tests implicitly test the unit root hypothesis for per capita income. Although the statistics do not have critical values under the null hypothesis most papers on this subject use them, with the corresponding problems for inference. This paper determines the existence of convergence in GDP levels and income across the regions of Chile using the traditional tests and also recent unit root tests for panel data that allow for correct inferences. We also analyze convergence in dispersion, evaluating the presence of asymmetries or the formation of regional "clubs" using nonparametric tests. Our main conclusions are: (1) the evidence supports the hypothesis of absolute β convergence in both per capita GDP and income; (2) the convergence rate is higher for income than for GDP; (3) the conditional convergence rate increases when we control for the share of mining on the regional productive structure; (4) the data do not support the existence of convergence clubs; and (5) there is no clear evidence of G convergence. [ABSTRACT FROM AUTHOR]

The article refers to the new Synthetic Efficiency Indicator for Economic Growth (SEI-EG) proposed in an earlier publication. Research from 2016–2018 in 11 EU countries revealed small nations were notably more effective at sustainable growth than their larger counterparts. This prompted the authors to ask about the differences between small countries with developed economies and small countries with lower levels of development joining the EU in 2004. The article aims to determine the relative efficiency of transforming growth inputs and debt into sustainability outcomes for small countries in the EU using the SEI-EG index over the period 2016–2020. The study group symmetrically includes six countries each from developed economies and six countries that joined the EU in 2004. The adopted indicator complements the expanded SDGs and aligns with the trend linking research inputs to sustainable development effects. [ABSTRACT FROM AUTHOR]

The aim of the article is to verify the convergence process of the Central and Eastern Europe (CEE) (CEE10) countries towards Western European countries (EU15) in years 1995–2016. Additionally, the paper aims to show the interaction between economic integration and convergence as well as business environment and growth. The study methods applied in in the article are analysis of the literature and wide range of quantitative methods (descriptive statistics. regression models (OLS and panel), the elements of taxonomic analysis (cluster analysis and Clark's coefficient of divergence). In the study years, CEE10 and EU15 countries were developing in accordance with the convergence hypothesis. The impact of economic integration on convergence was confirmed as well as the dependence of growth from the business environment in EU10. The added value of the study is the combination of three important research problems: convergence, economic integration and business environment. In addition, the research area concerns the CEE countries, which is very desirable. Many prior studies suggested to elaborate development and business processes in emerging countries like CEE. Thus, the article tries to fulfill this research needs. It has not only cognitive but also utilitarian values. The research results can be taken into consideration by policy makers to create an appropriate development policy and a conducive business environment. [ABSTRACT FROM AUTHOR]

Development and growth are complex and tumultuous processes. Modern economic growth theories identify some key determinants of economic growth. However, the relative importance of the determinants remains unknown, and additional variables may help clarify the directions and dimensions of the interactions. The novel stream of literature on economic complexity goes beyond aggregate measures of productive inputs and considers instead a more granular and structural view of the productive possibilities of countries, i.e., their capabilities. Different endowments of capabilities are crucial ingredients in explaining differences in economic performances. In this paper we employ economic fitness, a measure of productive capabilities obtained through complex network techniques. Focusing on the combined roles of fitness and some more traditional drivers of growth—GDP per capita, capital intensity, employment ratio, life expectancy, human capital and total factor productivity—we build a bridge between economic growth theories and the economic complexity literature. Our findings show that fitness plays a crucial role in fostering economic growth and, when it is included in the analysis, can be either complementary to traditional drivers of growth or can completely overshadow them. Notably, for the most complex countries, which have the most diversified export baskets and the largest endowments of capabilities, fitness is complementary to the chosen growth determinants in enhancing economic growth. The empirical findings are in agreement with neoclassical and endogenous growth theories. By contrast, for countries with intermediate and low capability levels, fitness emerges as the key growth driver. This suggests that economic models should account for capabilities; in fact, describing the technological possibilities of countries solely in terms of their production functions may lead to a misinterpretation of the roles of factors. [ABSTRACT FROM AUTHOR]

This study undertakes a sector-by-sector account of economic growth, historically since the inception of economic planning, and analyses the spatiotemporal patterns of both rural and urban poverty in India. The services sector bypassed the successful completion of industrialization and prematurely emerged as the dominant driver and key lever of economic growth. The supremacy of services sector strengthened the resilience of the economy to the exogenous shocks of weather aberrations affecting agriculture. The regional disparities have tended to increase over time. The study finds support for unconditional divergence, rather than convergence, in the level of per capita real income across states. The cross-sectional and panel data models estimated for a comprehensive set of 24 states—separately for the rural, urban, and combined rural–urban sectors—provide strong support to the poverty-reducing effects of economic growth. The income-elasticity of poverty hovers around − 2 for the number of persons living below the poverty line. The gains of economic growth are distributed unevenly across states and shared asymmetrically between rural and urban sectors. The economy witnessed a mixed picture of decline in rural–urban poverty, rise in regional disparities, and surge in income inequality. [ABSTRACT FROM AUTHOR]

This paper analyzes the hypothesis of regional convergence in Latin America through a non-linear growth model for the time period 1950-2010. The methodology combines three approaches: the threshold autoregressive model (tar), panel data unit root tests and calculating critical values with a bootstrapping simulation. The results of the tests applied to the per capita gross domestic product (gdp) of two groups of countries in Latin America (the wealthiest and then all nations in the region) suggest that the linear model is superior to the non-linear model and show no evidence of partial or absolute convergence. We did not identify a group of countries in the region with higher per capita income that would behave as a leading economy. Our results cast doubt on other studies conducted with linear tests that did find conditional convergence in some countries in the region. [ABSTRACT FROM AUTHOR]

In the context of EU enlargement there is no universal model which should offer a unique solution for diminishing the disparities in the development of a country. An approach only from the point of view of economic growth is not enough, so we extend the analysis towards the social development. Considering the level of GDP per capita and of HDI registered by EU states during 1995-2012, we test the hypothesis of real σ and β-convergence in terms of economic and social development. The estimated results indicate a tendency in reducing the divergence in both economic and social degree of development. A relatively strong process of real σ-convergence became evident while real β-convergence testing supports the hypothesis among EU countries, but the results indicate a slower process for HDI convergence compared with GDP per capita. [ABSTRACT FROM AUTHOR]

Core infrastructure, which covers transportation, information and communication (ICT), energy, water and sanitation systems, plays a significant role in economic growth. The development of core infrastructure – one of the European Union (EU) Cohesion Policy (CP) priorities – is heavily funded. However, it remains unclear whether these investments achieve the main aim, i.e. contribute to economic growth and convergence between EU countries and especially regions. A theoretical model addressing the identified issues is needed to assess the impact of infrastructure on economic growth and convergence comprehensively and as accurately as possible. To reach this aim, first, we have disclosed the definition of infrastructure and its structure. Also, we discussed different approaches to the relationship between infrastructure and economic growth. We developed a theoretical model for evaluating infrastructure impact on economic growth and convergence. Moreover, based on the neoclassical approach, we specified an econometric model that includes indicators of different types of infrastructure and assessed growth and convergence outcomes of infrastructure development. Even though we find that infrastructure positively affects growth and convergence, the estimated impact is not statistically significant except for some types of ICT and transport infrastructure. [ABSTRACT FROM AUTHOR]

This paper provides an analysis of absolute economic convergence among the group of ten new member states (NMS-10) that entered European Union in the year 2004. Convergence dynamics is estimated for the period from 1997 to 2012 as well as for two sub-periods: 1997-2007 and 2007-2012. The analysis covers aspects of sigma- (σ-) and beta- (β-) convergence. Convergence is first estimated by testing for panel unit root in GDP per capita series and then by using standard cross-section equations for absolute convergence. Different time intervals were used so that the analysis could capture the impact of the global economic crisis on long-term convergence performance among the NMS-10 countries. Our results show that this group of countries formed one homogenous convergence club during the entire observed period and achieved high convergence rates in the period before the crisis, while the level of homogeneity in the NMS-10 convergence club was significantly diminished in the period after beginning of the crisis. [ABSTRACT FROM AUTHOR]

Based on Aghion et al. (), this article provides new insights regarding whether financial development can affect economic growth non-linearly by adopting the concept of threshold effects. The empirical approach adopted in this article allows for the finance-growth relationship to be piecewise linear with a set of indicators including access to finance acting as a regime-switching trigger. Using cross-country observations from 144 countries stretching from 1985 to 2009, strong evidence of threshold effects in finance-growth link is found. It is suggested that financial development in general, and access to finance in particular, is among the important forces contributing to cross-country (non)-convergences in growth rates. [ABSTRACT FROM AUTHOR]

The article focuses on the economic growth model suited for countries with high proportions of foreign workers. It mentions that growth experiences of countries consisting the Gulf Cooperation Council (GCC) are consistent with the low per capita growth and high overall growth predictions of the modified growth model. Moreover, the foreign supply of labor becomes more elastic along the transitional dynamics converges to zero.

This paper examines empirically whether and how regional integration leads to convergence and growth amongst developing countries. Using standard growth models for nearly 100 developing countries over 1970-2004 we cannot establish robust growth effects of regional integration as such at the aggregated level of analysis even after using alternative measures of regional integration. However, because we find that trade and FDI promote growth, and because regional integration tends to increase trade and FDI, regional integration still has a positive impact on growth in its members through the effects of increased trade and investment on growth. Further, country-specific growth diagnostics do suggest that regional integration can be a binding constraint to growth as "deep" regional approaches can help to address crucial rail, road, air and energy links amongst countries (e.g. in the East African Community). Our findings also suggest that initially high levels of regional income disparities will lead to greater decreases in disparities. Whilst the level of intra-regional trade and incomes do not explain changes in income disparities, the presence of a regional Development Finance Institutions (e.g. Central American or East African development banks) with a relatively high loan exposure to GDP ratio tends to reduce regional income disparities suggesting a useful role for deeper integration in achieving regional cohesion. A one percentage point increase in exposure by DFIs leads to a drop of σ of about one percentage point. Finally, while the macro economic literature on regional integration tends to highlight only limited expected effects of African regional integration itself, our work at the firm level in three African countries (Benin, Malawi and South Africa) is indicative of significant dynamic effects of regional integration through the effects on firm level productivity in Africa. We suggest that in the future, further growth analytical work is undertaken which combines the development of methods to examine the effects of regions and measurement of the various types of regional integration.JEL Classification: F15, F21, F43, O47 [ABSTRACT FROM AUTHOR]

We examine the contribution of human capital to economy-wide technological improvements through the two channels of innovation and imitation. We develop a theoretical model showing that skilled labor has a higher growth-enhancing effect closer to the technological frontier under the reasonable assumption that innovation is a relatively more skill-intensive activity than imitation. Also, we provide evidence in favor of this prediction using a panel dataset covering 19 OECD countries between 1960 and 2000 and explain why previous empirical research had found no positive relationship between initial schooling level and subsequent growth in rich countries. [ABSTRACT FROM AUTHOR]

The impact of cross-border e-commerce (CBEC) on international trade is prominent in recent years. The authors extend the international trade model with heterogeneous firms to include CBEC export and deduce that CBEC lowers the capability threshold for export. Firms and regions with different capabilities are affected differently, but the total regional export is increasing. In the empirical analysis section, they use panel data from 31 provinces in China from 2015 to 2018 and construct proxy variables for CBEC with CBEC comprehensive pilot zones and CBEC exporters. They find that CBEC contributes to economic growth and economic convergence. The underlying mechanisms include the convergence of regional exports and total factor productivity, while the convergence of capital isn't supported by the results. [ABSTRACT FROM AUTHOR]

While Indonesia has been experiencing relatively considerable and stable economic growth in the last decades, the country is prone to income disparity across regions due to uneven distribution of population, natural resources and the persistent impacts of centralized development imposed by the New Order regime. This study examines the economic growth convergence in East Java, Indonesia, from 2010 to 2019 and explores the influence of government expenditure on education, health, and capital sector on the economic growth convergence. By considering spatial dependence across regions, the result shows no strong evidence of regional income convergence in East Java. Also, this research claims the presence of spillover effect of government expenditure on education and capital sector on regional income growth. Notably, higher government expenditure of the education sector in one region could stimulate higher economic growth of its neighboring regions. Conversely, higher government expenditure on the capital sector in one region may lower the economic growth of its surrounding regions. [ABSTRACT FROM AUTHOR]

This study explores the effects of patent protection in a research and development (R&D)‐based growth model with financial frictions. We find that whether stronger patent protection stimulates or stifles innovation depends on credit constraints faced by R&D entrepreneurs. When credit constraints are nonbinding (binding), strengthening patent protection stimulates (stifles) R&D. The overall effect of patent protection on innovation follows an inverted‐U pattern. By relaxing the credit constraints, financial development stimulates innovation. Furthermore, patent protection is more likely to have a positive effect on innovation under a higher level of financial development. We consider cross‐country panel regressions and find supportive evidence for this result. [ABSTRACT FROM AUTHOR]