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Pairwise Output Convergence in Selected Countries of East Asia and the Pacific.
- Source :
- ASEAN Economic Bulletin; Apr2011, Vol. 28 Issue 1, p1-15, 15p, 1 Color Photograph, 5 Charts
- Publication Year :
- 2011
-
Abstract
- This paper examines time series cross-country output convergence in eleven counties of East Asia and the Pacific. Specifically, we model the cross-country output differences as a Stochastic Unit Root (STUR) processes. Using the output-differences between Japan (reference country) and the other ten sampled countries, we find output convergence only for the Japan-Australia, Japan-New Zealand, Japan-Taiwan and Japan-Thailand country-pairs. Alternatively, using the output-differences between Australia (reference country) and the other ten sampled countries, we fail to find any evidence of convergence in seven country pairs of the sampled countries except for Australia-Japan, Australia-Hong Kong and Australia-New Zealand country pairs. Overall, our results do not support output convergence in a broader perspective but support the notion of "club convergence" among a small subset (30--40 per cent) of similar fast-growing economies. The causes for non-convergence of per capita real GDP for a majority of country pairs are an empirical issue that involves country-specific factors that render output gaps highly persistent, but we can broadly outline a few reasons for non-convergence and these include, low and unequal economic growth, lack of economic and financial integration among the sampled countries. [ABSTRACT FROM AUTHOR]
- Subjects :
- PER capita
GROSS domestic product
ECONOMIC convergence
Subjects
Details
- Language :
- English
- ISSN :
- 02174472
- Volume :
- 28
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- ASEAN Economic Bulletin
- Publication Type :
- Academic Journal
- Accession number :
- 63894092
- Full Text :
- https://doi.org/10.1355/ae28-1a