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This paper undertakes a rigorous examination of the convergence patterns of labour productivity at the regional and sectoral levels across Czech regions. In addition to conventional tests for β- and σ-convergence, we apply approach so as to model non-linearly and to allow for the various heterogeneity and transitional dynamics across regions. Our results reveal no evidence of convergence across the Czech Republic; rather, we discover widespread evidence of divergence supporting the existence of convergence clubs across regions. [ABSTRACT FROM AUTHOR]

This study analyzes real wage convergence within the European Union, scrutinizing it on both regional and national scales. It questions the prevalent notion that open labor movement within the EU naturally leads to wage parity. Using a flexible log t regression and clustering algorithm, the research uncovers a lack of real wage convergence across all EU countries and regions. Instead, it identifies distinct convergence clubs based on real wages, delineated as core versus peripheral countries, and further divided into four regional categories. These findings suggest the existence of significant differences between the core and peripheral countries, hindering wage equalization. Clubs converge to different steady states which yield substantially different average real wages. At the national level, the formation of these wage-based clubs is influenced by the output gap and unemployment benefits, competitiveness and labor productivity, trade integration, and partly by human capital and development level. This study's results are robust and consistent with economic theories concerning real wage determinants. On the regional front, the analysis reveals a complex interplay of multiple variables affecting club formation, with no significant distinctions between certain club pairings. The findings highlight the complex dynamics of wage convergence in the EU, influenced by both economic and non-economic factors. The differences between core and peripheral EU countries are still strong and affect labor market outcomes and real wage convergence. [ABSTRACT FROM AUTHOR]

The World Bank (WB) has described the European Union (EU) as a convergence machine, and the real and institutional convergence has been achieved for a long period of time, and EU's cohesion policy, alongside the Recovery and Resilience Facility (RRF), remains crucial for driving reforms and fostering investments that promote growth. But, in the last two decades this convergence machine has stopped working, and the convergence process has turned in the divergence. The divergence process poses a great risk for the smooth functioning of the EU, and it increases vulnerability of the EU to negative economic shocks. Productivity and institutional convergence are a necessary precondition for the smooth functioning of the EU, reducing differences in standards of living, increasing resilience, and achieving environmental sustainability. In the present paper, we will apply log t-test over the period 2003–2023 to investigate the formation of productivity and institutional convergence clusters. Our goal is to identify which countries belong to the poor productivity/institutional clubs, and to provide the necessary policy implications. Results indicate the existence of multiple steady states, which means that EU is vulnerable to external economic shocks [ABSTRACT FROM AUTHOR]

This study identifies convergence clubs based on district-level income per taxpayer in Hungary and investigates how initial conditions and structural characteristics affect clubs' emergence. To do so, we perform a two-step procedure, using the log t-test to delineate districts that converge towards the same steady-state condition, and then employing ordinal logistic regression to analyse the role of factors that influence club membership. Our results demonstrate that no global convergence occurred in Hungarian districts between 2001 and 2020 after verifying the presence of six convergence clubs. Our analyses confirm the club convergence hypothesis, finding that clubs' formation is primarily influenced by initial conditions (initial income, human capital). Stable and persistent inequalities are evident between clubs, which do not seem to be resolved in the long run. The authors propose a club-specific development toolkit to address these inequalities. [ABSTRACT FROM AUTHOR]

Can we associate globalization with converging productivity levels of different countries? Are developing countries catching up? This paper provides answers to these questions by studying the convergence of labor productivity with the Penn World Table 10.0. I utilize standard β - and σ -tests and the new σ -test Kong et al. (J Econom 209(2):185–207, 2019) propose. Furthermore, I propose using a time-series trend test to further study the underlying process of σ -convergence. The tests support convergence in the country groups of OECD, EU, APEC, Europe, and Asia. Contrary to the current belief that the income gap between rich and poor countries is not closing, I find σ -convergence in a group that excludes only African countries. More so, even the group of all countries seems to converge from the year 2000. [ABSTRACT FROM AUTHOR]

Interest in regional convergence in mean incomes has been rekindled by findings that suggest a shift from convergence to divergence. While the majority of existing research has explored convergence in mean incomes, this research focuses specifically on the convergence/divergence of interpersonal income distributions across regions, referred to throughout the study as comparative inter-regional inter-personal income distributions (CIRIPID). The findings suggest that CIRIPID, as measured by the Gini coefficient, converge across countries, but that heterogenous trends are visible within countries. The results highlight that in some countries regions are becoming equally more unequal, while others see regional Gini coefficients trend towards a lower level of inequality. The study also explores the impact of systems of government on CIRIPID. In addition, the study draws on the convergence club methodology to identify heterogeneous CIRIPID convergence paths within countries. [ABSTRACT FROM AUTHOR]

The World Bank (WB) has described the European Union (EU) as a convergence machine, and the real and institutional convergence has been achieved for a long period of time, and EU’s cohesion policy, alongside the Recovery and Resilience Facility (RRF), remains crucial for driving reforms and fostering investments that promote growth. But, in the last two decades this convergence machine has stopped working, and the convergence process has turned in the divergence. The divergence process poses a great risk for the smooth functioning of the EU, and it increases vulnerability of the EU to negative economic shocks. Productivity and institutional convergence are a necessary precondition for the smooth functioning of the EU, reducing differences in standards of living, increasing resilience, and achieving environmental sustainability. In the present paper, we will apply log t-test over the period 2003–2023 to investigate the formation of productivity and institutional convergence clusters. Our goal is to identify which countries belong to the poor productivity/institutional clubs, and to provide the necessary policy implications. Results indicate the existence of multiple steady states, which means that EU is vulnerable to external economic shocks

Abstract Background Reducing health outcomes disparities in Africa is a major concern for policymakers. Inter-country disparities in Africa is well documented. However, little is known about the accurate trajectory of these disparities over time. Thus, this paper investigates the convergence hypothesis in health outcomes in 40 African countries using data from the World Development Indicators. The study used panel data from 2000 to 2019. Method The study employs a nonlinear time-varying factor model to test the convergence hypothesis on infant mortality rate, under-five mortality, and life expectancy at birth. Then, we use the marginal effects of the ordered logit regression model to investigate the factors that explain club memberships. Results The findings showed the absence of overall convergence for the three variables of interest. However, we identified the presence of convergence clubs. Moreover, we observed substantial gaps between the estimated clubs. The marginal effect results reveal that real GDP per capita, population structure, urbanization, trade, access to basic sanitation, and external health expenditure are essential to club formation. In addition, DTP immunization and the general government health expenditure as a percentage of the general government expenditure (our Abuja Declaration instrument) also play a significant role in explaining the club membership. Conclusion The findings suggest that policymakers should develop and implement targeted club-specific health policies. Furthermore, interventions to promote increased immunization, particularly among children, should be encouraged. Governments should also make substantial efforts to increase the share of their national budget allocated to the health sector by at least 15 percent.

This work aims to assess whether there is a convergence in the emission of Greenhouse Gases (GHG) in the states of Brazil. To achieve this objective, the Phillips and Sul (2007) time series methodology was employed, testing the hypothesis of global (or common) convergence, using data from the Greenhouse Gas Emissions and Removal Estimation System (Sistema de Estimativas de Emissões e Remoções de Gases do Efeito Estufa - SEEG), for the period of 1989–2018, which provides the emission, in tons, of Carbon Monoxide (CO) in agriculture and livestock, as well as of Carbon Dioxide (CO2), for changes in land and forest use. Among the main results, the formation of different convergence clubs is suggested, rejecting the hypothesis of global convergence, and thus presenting four convergence clubs for the CO pollutant and three clubs for the CO2, with two divergent states. When analysing the convergence clubs, it was found that there was a significant reduction in CO emissions in all clubs, and while analysing the CO2, only two of the clubs, which were clubs 3 and 4, managed to reduce their emissions. [ABSTRACT FROM AUTHOR]

This document uses the Phillips and Sul (2009) test to assess the hypothesis of convergence on educational achievement of public and private schools, at the municipal level, for the period 1980-2014. Even though the normativity and provision of public education is homogeneous across the country, we find that the educational attainment of the municipalities do not show evidence of global convergence. However, we find the existence of six convergence clubs. The first two clubs, which include the municipalities with the best performance, are mainly private institutions in the major metropolitan areas, while the latter three clubs are composed primarily for public institutions located on the Pacific coast and in the Caribbean region. [ABSTRACT FROM AUTHOR]

Background: Reducing health outcomes disparities in Africa is a major concern for policymakers. Inter-country disparities in Africa is well documented. However, little is known about the accurate trajectory of these disparities over time. Thus, this paper investigates the convergence hypothesis in health outcomes in 40 African countries using data from the World Development Indicators. The study used panel data from 2000 to 2019. Method: The study employs a nonlinear time-varying factor model to test the convergence hypothesis on infant mortality rate, under-five mortality, and life expectancy at birth. Then, we use the marginal effects of the ordered logit regression model to investigate the factors that explain club memberships. Results: The findings showed the absence of overall convergence for the three variables of interest. However, we identified the presence of convergence clubs. Moreover, we observed substantial gaps between the estimated clubs. The marginal effect results reveal that real GDP per capita, population structure, urbanization, trade, access to basic sanitation, and external health expenditure are essential to club formation. In addition, DTP immunization and the general government health expenditure as a percentage of the general government expenditure (our Abuja Declaration instrument) also play a significant role in explaining the club membership. Conclusion: The findings suggest that policymakers should develop and implement targeted club-specific health policies. Furthermore, interventions to promote increased immunization, particularly among children, should be encouraged. Governments should also make substantial efforts to increase the share of their national budget allocated to the health sector by at least 15 percent. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between financial development and the growth effect of foreign direct investment in a panel of 75 countries between 1990 and 2019 using a regression-based club convergence test and linear and nonlinear specifications. Our regression analysis suggests that financial development emerges as a significant determinant of the composition of convergence clubs, albeit differently for the nexus between foreign direct investment and growth in each club. The results also point to the presence of heterogeneity and threshold effect in the relationship between foreign direct investment and growth, reflecting both the "kick-in" and "vanishing" effects of financial development. Thus, at lower levels of financial development, pursuing policies aimed at improving local financial sector conditions in tandem with policies aimed at attracting more foreign direct investment can help host economies maximize the benefits of foreign direct investment. However, policymakers can expect these benefits to eventually decline as the economy becomes more financially developed. [ABSTRACT FROM AUTHOR]

While exploring convergence in real income and in manufacturing productivity of the central and eastern European countries (CEE) and the southern EU counties with the developed EU ones, testing and clustering methodology and sigma convergence are used. We found that CEE countries strongly converge, both in real income and manufacturing productivity, with developed EU countries, while the southern EU countries do not. Moreover, the convergence pattern in real income follows that in manufacturing productivity in both peripheral EU groups suggesting that the underlying productivity clubs determine the formation of income clubs. The observed time pattern of sigma convergence also suggests that manufacturing productivity drives economic growth, as (non)convergence of the former preceded ('caused') that of the latter. Aforementioned findings are robust, since they are supported by the results obtained both by the Phillips and Sul (2007) approach and sigma convergence. [ABSTRACT FROM AUTHOR]

We analyse growth patterns of the Russian federal subjects, and test if all regions converge to a common growth path, or if there are many convergence clubs by using the data on regional GDP per capita for the 1996–2017 period. Our analysis shows that there are four different convergence clubs in the Russian Federation, and there is no geographical concentration of the clubs. The regions with dynamic population movements are likely to be in high-income clubs, and they attract more people. Most of the national republics are included in low-income clubs, and, after controlling for other factors, we find that the North Caucasian republics are likely to be members of low-income clubs, whereas there is not much difference between other republics and regions. The persistence of income differences across convergence clubs is a cause of concern for long term sustainable growth and stability. [ABSTRACT FROM AUTHOR]

Latin America experiences an increasing urban primacy index and a rapid expansion of the financial system, putting direct pressure on the demand for resources to satisfy the consumption of large cities. We investigate the convergence of per capita biocapacity in 16 Latin America countries and evaluate the factors that influence its evolution over time. Specifically, we analyze the impact of the urban primacy index, economic progress, and the financial globalization index on the convergence of per capita biocapacity. We use the methodological framework developed by Phillips and Sul Econometrica 75:1771-1855, (2007) to analyze the convergence and the formation of convergence clubs of biocapacity during 1970–2017. The findings indicate that the countries of the region do not share a common trend of biocapacity, although they are grouped into five converging clubs. Biocapacity transition analysis reveals that countries have heterogeneous transition pathways between them. Using marginal effects, we find that the urban primacy index and economic progress reduce the biocapacity. The effect of the financial globalization index on biocapacity is not conclusive. The quantile regressions reveal that quantiles' impact of the urban primacy index and financial globalization on per capita biocapacity is heterogeneous. However, the effect of economic progress on biocapacity that predominates among quantiles is positive. The adoption of common policies among the countries that form the converging clubs could improve the effectiveness of pro-environmental policies and promote the achievement of the Sustainable Development Goals related to environmental quality. [ABSTRACT FROM AUTHOR]

The last quarter of the 20th century was a period of sustained economic growth across many countries. Countries' institutional arrangements have been commonly employed as factors in the convergence studies of economic growth and income levels. However, the issue of whether institutions themselves converge has been under-researched. Using the nonparametric distribution dynamics approach and a sample of 194 countries during the 1980-2010 period, we examine a tendency for countries' informational transparency (IT) to converge over time. We find that whilst there is some evidence of unconditional convergence across countries, there is stronger evidence for convergence clubs to emerge, at both regional and income levels. Notably, the level of IT of the low- and lowermiddle- income countries and those situated in Africa, and Middle East regions tend to converge towards a level significantly below the global average. We also find a strong relationship between income and IT. [ABSTRACT FROM AUTHOR]

This paper empirically analyzes the convergence and interdependence of environmental taxes in Europe from 1998 to 2018. Our results evidence a lack of European integration and reveal a group of converging countries characterized by a lowering tax burden. Moreover, a subsequent spatial regression analysis supports that the converging countries exhibit a significantly greater sensibility to the neighboring environmental tax policies, compatible with some degree of cross-country tax competition.

This article aims at investigating the tourism markets' convergence hypothesis across Italy's 20 major source markets. To reach our goal, we use monthly data of tourist arrivals and overnights over the period 2008–2018 and the time-varying factor model developed by Phillips and Sul (2007, 2009). Our findings suggest the absence of full (absolute) convergence, leading us to accept the hypothesis of club convergence. We show that the traditionally more important source markets have a tendency to persist, while Asian countries show heterogeneous behaviour. Furthermore, the relative decline in the contribution to total arrivals and overnights of several international source markets calls for a reconsideration of the promotional strategies to stimulate inbound tourism from these countries. [ABSTRACT FROM AUTHOR]

The ecological footprint is an indicator used in recent years to assess the accelerated process of environmental degradation experienced by countries. In particular, in regions or countries with high biodiversity, strong dependence on natural resources, high informality, and low productive specialization. We employ a set of quantitative techniques within the theoretical framework of convergence and found the existence of per capita ecological footprint clubs. In addition, we estimate a set of logistic regressions to obtain the average marginal effect of the determinants of the convergence clubs. We found that economic complexity, the shadow economy, and natural resources significantly influence the formation of convergence clubs. The results indicate the existence of convergence in three clubs, while two clubs are divergent. Environmental policymakers in this region should collectively mitigate environmental degradation and achieve sustainable development goals, particularly among the countries that make up the convergence clubs. [ABSTRACT FROM AUTHOR]

• We studied the distribution dynamics of household consumption upgrading in China. • The study is based on a dataset of 21,872 household-year observations. • Most households have a consumption upgrading index between 0.75 and 0.95. • Rural-urban gap and regional disparity can be reduced in the future. • The issue of urban poverty may exacerbate further. This paper studies the distribution dynamics of China's household consumption upgrading by using household survey data. The findings show that the consumption upgrading index is between 0.75 and 0.95 for most of the households. The convergence value of the rural households is much higher than their urban counterparts, and the rural-urban gap can be reduced in the future. However, urban poverty may exacerbate as our findings show that the urban households with consumption upgrading index around 0.63 would experience consumption downgrade. Turning to regional disparity, the western region in China would converge to the highest level of consumption upgrading index amongst the four regions, while the northeastern region would converge to the lowest level. The study suggests that consumption upgrading and development policy should pay attention to regional disparity, rural development, and urban poor, and the measures should be group specific. [ABSTRACT FROM AUTHOR]

In this study, the economic growth of the NUTS 3 level regions (counties) in six Central and Eastern European EU member states (Bulgaria, the Czech Republic, Poland, Hungary, Romania, and Slovakia) is analysed between 2000 and 2018. The focus is on whether one can separate groups of NUTS 3 regions with a similar growth trajectory (i.e., convergence clubs), which converge to their club-specific steady-state equilibrium value. To distinguish such convergence clubs, the authors use a regression-based convergence test (log t-test) that is developed by Phillips and Sul [2007]. The evolution of inequalities within and between clubs is presented using a generalized Theil index. [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.)

This paper investigates the formation of convergence clubs and examines the drivers of growth convergence in Africa by accounting for individual heterogenous effects and establishing transitional paths. We particularly employ the sophisticated log t test to identify underlying convergence clubs and use LSDVC as a benchmark model for analysing the drivers of convergence. We also apply the System Generalized method of moments (GMM) model for sensitivity purposes. Our results reveal four core convergence clubs; seemingly characterised by the measures of institutional stability with distinct transitional paths. We consequently highlight the importance of initial conditions, human capital and institutions in the formation of convergence clubs. Thus, the paper provides insights into the adoption of differentiated development policies consistent with the specific conditions of African countries with the integration agenda driven by accelerated levels of human capital development and technological progress. [ABSTRACT FROM AUTHOR]

This paper studies the evolution of regional disparities in labor productivity, capital accumulation, and efficiency across Indonesian provinces over the 1990–2010 period. Through the lens of a nonlinear dynamic factor model, we first test the hypothesis that all provinces would eventually converge to a common steady‐state path. We reject this hypothesis and find that the provincial dynamics of labor productivity are characterized by two convergence clubs. We next evaluate the dynamics of the proximate sources of labor productivity and find some mixed results. On the one hand, physical and human capital accumulation are characterized by three and two convergence clubs, respectively. On the other hand, efficiency is characterized by a unique convergence club. The paper concludes by suggesting that, based on the provincial composition of each club and the common low level of efficiency across Indonesia, considerable improvements in both capital accumulation and efficiency are still needed to reduce regional disparities and accelerate productivity growth. [ABSTRACT FROM AUTHOR]

Using data on U.S. state-level unionization from Hirsch et al. (2001) and the club convergence test developed by Phillips and Sul (2007, 2009), this paper shows that U.S. states have distinct groupings in terms of the level of unionization. In particular, the states in the American South generally belong to their own low union density groups. Further, states in the Northeast (such as New York) and the Great Lakes region (Michigan, Ohio) tend to have high levels of unionization and form their own convergence clubs. [ABSTRACT FROM AUTHOR]

This paper finds club convergence within the 50 U.S. states using the Phillips and Sul regression-based convergence test with per capita real state domestic product from 1997 to 2017. Two clubs with diverging transition paths are found. Clubs 1 and 2 mimics the divide that is seen in the flow of funds from the federal government to the states. Hence, the Phillips and Sul logt test is telling the tale of there being two Americas if all factors remain the same, but this need not be the case with the proper policy prescription. [ABSTRACT FROM AUTHOR]

Copyright of Nova Economia is the property of Nova 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.)

Investigation of economies as complex adaptive systems may provide a deeper understanding of their behavior and response to perturbation. We use methodologies from ecology to test whether the global economy has discontinuous size distributions, a signature of multi-scale processes in complex adaptive systems, and we contrast the theoretical assumptions underpinning our methodology with that of the economic convergence club literature. Discontinuous distributions in complex systems consist of aggregations of similarly-sized entities, separated by gaps, in a pattern of non-random departures from a continuous or power law distribution. We analysed per capita real GDP (in 2005 constant dollars) for all countries of the world, from 1970 to 2012. We tested each yearly distribution for discontinuities, and then compared the distributions over time using multivariate modelling. We find that the size distribution of the world's economies are discontinuous and that there are persistent patterns of aggregations and gaps over time. These size classes are outwardly similar to convergence clubs, but are derived from theory that presumes that economies are complex adaptive systems. We argue that the underlying mechanisms, rather than emerging from conditions of initial equivalence, evolve and operate at multiple scales that can be objectively identified and assessed. Understanding the patterns within and across scales may provide insight into the processes that structure GDP over time. [ABSTRACT FROM AUTHOR]

The convergence hypothesis, which is developed in the context of growth economics, asserts that the income differences across countries are transitory, and developing countries will eventually attain the level of income of developed ones. On the other hand, convergence clubs hypothesis claim that the convergence can only be realized across groups of countries that share some common characteristics. In this study, we propose a new method to find convergence clubs that combines a pairwise method of testing convergence with maximum clique and maximal clique algorithms. Unlike many of those already developed in the literature, this new method aims to find convergence clubs endogenously without depending on a-priori classifications. In a Monte Carlo simulation study, the success of the method in finding convergence clubs is compared with a similar algorithm. Simulation results indicated that the proposed method perform better than the compared algorithm in most cases. In addition to the Monte Carlo, a new empirical evidence on the existence of convergence clubs is presented in the context of real data applications. [ABSTRACT FROM AUTHOR]

Universities are emerging growth determinants. This is so as, in addition to the fulfillment of their traditional role in teaching and (basic) research, universities, as aptly described within the helix framework, are expected to engage in regional development processes. The paper aims to detect trends of convergence among EU universities in terms of performance. To the best of our knowledge, this topic has not hitherto been examined. The empirical analysis of the paper covers the period 2014–2021, utilizes data obtained from URAP (University Ranking by Academic Performance), and employs the methodological approach of convergence clubs. The findings of the paper provide valuable insight into both theory and policy-making. We conclude that despite the unification of EU educational space, trends of divergence among EU universities are still present, and notable divisions still remain. Consequently, this indicates that the impact of EU universities on the formation of spatial disparities across EU space is not neutral.

Innovation and adaptation of renewable energy technologies significantly reduce carbon dioxide (CO2) emissions and increase energy efficiency. Understanding the convergence patterns in renewable energy innovation will enable policymakers to design policies to increase energy efficiency and renewable energy consumption and reduce CO2 emissions. This paper applies the convergence algorithm proposed by Philips and Sul to assess the convergence in renewable energy innovation for 90 countries covering the period between 1993 and 2018. This paper also examines the determinants/factors driving the convergence clubs of the countries using Probit and Logit regression. The convergence analyses suggest that there is no global convergence in renewable energy innovation. Findings highlight two convergence clubs: i) a club comprising more innovative countries and ii) another club that includes less innovative countries. We find that countries with higher income per capita, CO2 emissions per capita, research and development (R&D) investment, better environmental regulations and stronger institutional settings are more likely to be part of the innovative club. Countries should increase their R&D investment and environmental regulations and improve their institutional quality to increase their likelihood of belonging to a more innovative club. Furthermore, less innovative countries could promote policies to transfer renewable energy technologies from innovative countries. [ABSTRACT FROM AUTHOR]

The intensification of integration processes is political and economically desirable for developing countries. However, the existence of asymmetries in the income level hinders the realization of that goal. These latter issues are extremely important in The Caribbean. The main results are that deeper integration integration is verified de facto accompanying institutional efforts, and that this enhancement was sponsored by the formation of two groups converging internally. Such process is more approximate to the formation of convergence clubs that reducing asymmetry that has been proposed as a goal in the signed agreements.

This research deals with the problem of agricultural land market efficiency using the spatial market integration concept as well as the present value (PV) model. Empirically, it aims to test the convergence of agricultural land prices across Polish provinces. In order to check the law of one price (LOP), good-quality, medium-quality and bad-quality land sales markets are examined separately. Furthermore, this study is complemented by an analysis of the drivers behind agricultural land price convergence. The main method of testing price convergence is the log t regression. The latter was performed in two configurations, i.e., based on trend components of time series extracted using the Hodrick–Prescott filter and the Hamilton filter. Additionally, traditional β- and σ-convergence tests were applied. The obtained results indicated that agricultural land prices tend to converge in relative terms, which means that the provinces share a common long-run growth path. This finding and estimates of traditional convergence tests prove the increasing integration in the agricultural land market in Poland. There is no evidence, however, to support the conclusion that the absolute version of the long-run LOP holds. Moreover, using dynamic fixed effects models, it was identified that for good-, medium- and bad-quality land prices almost the same drivers of convergence apply. The only differences concern the strength of the influence of independent variables on prices of farmland of various types. Additionally, bad-quality land prices are the only ones which are affected by livestock density. Furthermore, estimates of the present value model finally confirmed that the agricultural land sales market in Poland cannot be considered as efficient.

This paper analyses the patterns of convergence across the European Union countries in terms of both economic growth and technological conditions during the period 1995-2013. We apply the methodology of Phillips-Sul (2007) to study convergence in real income per capita and countries’ technological capabilities. We consider separately eight technological indicators as proxies for a country's innovative ability and absorptive capacity. The results support the club convergence hypothesis for income and some technology-related indicators, and offer an approximation to the role that technological capabilities could play in the income convergence process.

From the compositional point of view, research on this topic has revealed two main directions: (1) an analysis of global development asymmetry that has activated gravitational processes in geo-economic space; and (2) a direction that focuses on the profound study of the causes for heterogeneity in geo-economic space and divergence in global development under the influence of gravitational factors of nature on the endogenousexogenous axis. Systemic determinants of gravitational processes are revealed in geo- economic space and the asymmetry of global activate ravitional processes in geo-economic space are observed, and methodological interconnectedness coinfluence of two complementary determinants of global development – convergence and divergence and the contradiction between them are examined, which at the same time underlie the inevitable internal contradictions of the process, creating conditions for further configuration of the «new globalization community», which is built on the principles of nonlinear dynamics and logic gravitational processes in geo-economic space.Taking into account the relevant uncertainties, the attention is focused on the isolation of several myths around which the debate that has important methodological significance in the context of the current global inter-system transformations is held. Geostrategic matrix divergence of global development is produced,which is based on techniques which incorporated cluster analysisthat are built on linguistic variables and integrated analysis of the key trends of country and global development geostrategic position of Ukraine in geo-economic space in the projection on the issues of global inter-system transformations isoutlined .It is proved that the level of gravity load increases in the deepening of the global asymmetries , and that the current global transformation is not yet complete, and polycentric new architecture geospace is not formed. In the near future we should expect the growth of gravitational processes in geo-economic space under the influence of fragmentation in information technology development countries, worsening energy problems, strengthening of the environmental risks and disasters, adverse trends sociodemographic. The divergence of global development will be strengthened as institutional «failure» and socio-cultural constraints. These aspects should be the subject of research and theoretical basis for the formation of new approaches to global development.

This paper analyzes fiscal convergence and sustainability in the European Union using data on government debt, revenues, and expenditures. Absolute fiscal divergence is present in the EU, especially after the sovereign debt crisis. However, we find evidence of fiscal club convergence when clubs are endogenously determined. Club convergence is important for the EU because there is no single fiscal policy and member states' policies are heterogeneous. Endogenous clubs do not share the usual geographical, political, or development similarities. Fiscal policy in the EU is found to be unsustainable, but it is countercyclical. We use a policy response function where the primary surplus is a function of public debt and the output gap. The primary surplus does not respond to changes in public debt, and this is considered to be unsustainable. However, it increases in expansions and decreases in recessions thus being countercyclical. The countercyclical primary surplus is important for smoothing business cycles. [ABSTRACT FROM AUTHOR]

By applying the methodological framework of transition modeling and econometric convergence tests introduced by Phillips and Sul, we reveal the existence of convergence clubs and transition convergence paths of international visitor arrivals for Australia. Specifically, by using monthly data of international arrivals over the period of January 1991 to September 2017, we provide evidence that tourism markets can integrate. The analysis suggests the identification of five distinct convergence clubs. This in turn signifies an integration phenomenon of Australia's tourism market, which is revealed through the different convergence patterns of international visitor arrivals. Finally, it is evident that the revealed integration behavior of Australia's international tourism market will enable policy makers to target better tourism needs through customized policies. [ABSTRACT FROM AUTHOR]

In this paper we examine whether there is a convergence among residential water price rates for thirty major U.S. cities over the period 2010-2017. By utilizing the methodological framework by Phillips and Sul (Econometrica 75:1771-1855, 2007, J Appl Econom 32:1039-1042, 2009) we test for the existence of convergence clubs among cities’ water pricing policies. We identify the existence of convergence clubs which are based on different consumption markets. The estimated transition paths reveal a tendency of policy makers to increase water price rates over the examined period, which is more pronounced for lower consumption markets. [ABSTRACT FROM AUTHOR]

ABSTRACT: In this paper, we examine the convergence hypothesis using a long memory framework that allows for structural breaks and does not rely on a benchmark country using both univariate and multivariate estimates of the long memory parameter d. Using per capita GDP gaps, we confirm the findings of non‐stationarity and long memory behavior that have been found previously in the literature using univariate tests. However, the support for these findings is much weaker when using a multivariate framework, in which case we find more evidence of stationary behavior. Based on these results, we also investigate club formation, something that would suggest the presence of conditional convergence. We describe a club formation methodology using the sequential testing criteria that we have employed in our analysis as the basis for forming clusters or clubs of countries with similar convergence characteristics. [ABSTRACT FROM AUTHOR]