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The Classical Approach to Convergence Analysis
Abstract
The concepts of σ-convergence, absolute β-convergence and conditional β-convergence are discussed in this paper. The concepts are applied to a variety of data sets that include a large cross-section of 110 countries, the sub-sample OECD countries, the states within the United States, the prefectures of Japan, and regions within several European countries. Except for the large cross-section of counties, all data sets display strong evidence of σ-convergence and absolute β-convergence. The cross-section of countries exhibits σ-divergence and conditional β-convergence. The speed of conditional convergence, which is very similar across data sets, is close to 2% per year.
... The neoclassical convergence debate gained attention in mainstream econometrician circles during the 1980s (Sala-i-Martin, 1996)-first by Baumol (1986), then by Barro (1991) and Mankiw et al. (1992) and thereafter by Barro and 1 STACEY-LEE MARAIS 2 Sala-i- Martin (1995). Moreover, further investigation stems from the need for economists to answer several questions, one of which is whether poor countries will continue to be poor in the long term or whether they will catch up and be the rich nations of tomorrow. ...
... Moreover, further investigation stems from the need for economists to answer several questions, one of which is whether poor countries will continue to be poor in the long term or whether they will catch up and be the rich nations of tomorrow. Sala-i-Martin (1996) posited two reasons for the increase in popularity of investigating this issue. First, it was put forward to test the validity of modern theories of economic growth and enabled the calculation of time estimates for convergence across economies. ...
... First, it was put forward to test the validity of modern theories of economic growth and enabled the calculation of time estimates for convergence across economies. Second, macroeconomic data became more widely available, allowing international comparability across many nations and the plotting of the evolution of growth levels over a period (Sala-i-Martin, 1996). The investigation into the evolution of these growth levels gives impetus to the convergence hypothesis, assuming that the only difference between them is the initial levels of capital (Sala-i-Martin, 1996). ...
Economic convergence has received much attention since the 1980s when
researchers tried to ascertain whether low-income countries would stay that
way in the long run, or they would gain ‘developmental traction’ and become the
affluent nations of the future. This article gives fresh insight on this topic from
an African perspective by comparing 39 countries—South Africa, 32 Organisation
for Economic Cooperation and Development (OECD) members and 6 Latin
American countries. The author investigated their average steady-state equilibria
and tested convergence trends from 1980 to 2019. The Solow–Swan model was
tested. Furthermore, this study applies panel econometric modelling to determine
the relationship between the variables analysed in the convergence analysis. This
commenced with the Levin–Lin–Chu and Im–Pesaran–Shin panel unit root tests.
Then, the Kao test and the vector error correction model were used to evaluate
the cointegration and relationships between variables. The findings revealed that
South Africa’s economic performance is significantly lower than the OECD average
gross domestic product per capita with an annual growth rate of 0.54%, which
falls below the ‘iron law of convergence’ hypothesis.
... The essence of economic growth driven by economic liberalisation lies in the extensive use of technology. According to endogenous growth theory, regional openness fosters economic growth through the availability of technology and knowledge (Sala-i-Martin, 1996). Technology utilisation is a significant catalyst for economic openness. ...
... However, it faces challenges in empirical studies. Previous studies have shown that economic growth varies across regions depending on the technology used, policy differences, and institutional patterns (Sala-i Martin 1996;Romer 1990;Mankiw et al., 1990). High technology use can be facilitated through economic liberalization and economic openness, which allow the freer movement of goods, services, and human resources without trade barriers (Nam, Bang, & Ryu, 2023). ...
... As a result, these regions experience higher economic growth compared to others. This aligns with Salai- Martin's (1996) research, which found that, in Indonesia, FDI is a source of economic growth by transferring technology that enhances production, infrastructure and employment opportunities. This research contradicts the findings of Ramly et al. (2023) and Abbes et al. (2014). ...
The high levels of foreign direct investment (FDI) and economic openness in East Kalimantan have yet to lead to the region catching up with other areas in Kalimantan. This discrepancy in growth patterns is believed to contribute to regional inequality within Kalimantan. This study aims to analyse FDI and economic openness. This study utilises panel data from provinces in Kalimantan from 2011 to 2020, employing the static panel method. The findings indicate that FDI has a negative effect on economic growth, primarily due to low levels of FDI compared to domestic investment in Kalimantan. Consequently, policies to improve human capital through education are necessary to facilitate technology transfer and ensure that FDI has a positive impact. Additionally, the results show that exports have a positive effect on economic growth, indicating that exports in Kalimantan contribute to economic growth. The contribution of this study lies in its conformity with the endogenous growth theory.JEL: O1, O11, O40, F10, F31.
... Economic growth theories predict that GDP should "converge" towards equality, with wealthy countries experiencing smaller relative growth rates than poor countries. However, the opposite has been found for economic wealth data [11][12][13]. So we address the question, what are the growth dynamics for public debt? ...
... If β > 0, there is convergence in per capita debt data across countries, since initially more indebted economies tend to increase their debt slower (smaller r i (t, t + ∆t)) than initially less indebted economies. Hence, β represents the "speed of convergence", a concept introduced for per capita GDP data in Ref. [13]. A larger positive value of β results in faster convergence, equalizing the per capita debt across all countries more quickly. ...
... We also analyze the growth rates of per capita GDP and confirm the divergence across countries observed originally in [11][12][13]. In Fig. 4 we plot for per capita GDP, the analogous regression S values that we plot in Fig. 3 for per capita public debt. ...
Public debt is one of the important economic variables that quantitatively describes a nation's economy. Because bankruptcy is a risk faced even by institutions as large as governments (e.g. Iceland), national debt should be strictly controlled with respect to national wealth. Also, the problem of eliminating extreme poverty in the world is closely connected to the study of extremely poor debtor nations. We analyze the time evolution of national public debt and find "convergence": initially less-indebted countries increase their debt more quickly than initially more-indebted countries. We also analyze the public debt-to-GDP ratio R, a proxy for default risk, and approximate the probability density function P(R) with a Gamma distribution, which can be used to establish thresholds for sustainable debt. We also observe "convergence" in R: countries with initially small R increase their R more quickly than countries with initially large R. The scaling relationships for debt and R have practical applications, e.g. the Maastricht Treaty requires members of the European Monetary Union to maintain R < 0.6.
... There is 'Beta' convergence, which indicates the catching-up of poorer countries or regions with richer ones based on capital abundance (Barro & Sala-i-Martin, 1992), and it is underlined by Solow's (1956) neoclassical growth theory. This is different from 'Sigma' convergence proposed by Sala-i-Martin (1996), which emphasises the reduction in dispersion between countries or regions as they converge towards different steady-states. Sala-i-Martin (1996) argues that countries converge but towards different steady-states (Paprotny, 2020). ...
... This is different from 'Sigma' convergence proposed by Sala-i-Martin (1996), which emphasises the reduction in dispersion between countries or regions as they converge towards different steady-states. Sala-i-Martin (1996) argues that countries converge but towards different steady-states (Paprotny, 2020). In this paper, 'convergence' is defined, in the context of regional economic communities, to mean policy harmonization, synchrony, or homogeneity in macroeconomic indicators (including fiscal, monetary and external balance parameters). ...
This study examines the convergence of fiscal policy in the West African Monetary Zone (WAMZ) using annual panel data series between 2001-2020 in a log t regression convergence model. The findings reveal compelling evidence of divergences in fiscal policies (tax revenue, expenditure, deficit, and debt policies), with the largest divergences in debt (-4.32) and expenditure (-3.39) policies. In view of its findings, the study proposes a multiple fiscal rule regime to accommodate the idiosyncrasies of member states; and advocates for the introduction of non-binding tax and expenditure rules to complement existing deficit and public debt rules and enable a more complete evaluation of fiscal performance and compliance in the zone.
... En çok kullanılan yöntemler arasında sigma yakınsaması, koşullu beta yakınsaması, koşulsuz beta yakınsaması ve birim kök analizi yer almaktadır. Sigma yakınsaması yaklaşımında Sala-i Martin (1996)'e göre, ekonomiler arası kişi başına düşen gelir eşitsizliğinin zamanla azaldığını analiz etmek için standart sapma kullanılabilir. Yakınsama çalışmalarında kullanılan diğer bir yöntem olan beta yakınsaması; koşullu ve koşulsuz olmak üzere ikiye ayrılmaktadır. ...
... Koşullu beta yakınsamasına göre ise ekonomilerin incelenen ilk durumdaki (başlangıç döneminde) gelir seviyelerinin aynı olması söz konusu değildir. Bu nedenle, ancak benzer teknoloji seviyelerine, tasarruf oranlarına ve/veya nüfus büyüme oranlarına sahip olan ekonomiler arasında uzun dönemde yakınsama görülebileceği tespit edilmiştir (Barro ve Sala-i Martin, 1990, s.109;Barro ve Sala-i Martin, 1992, s.241;Sala-i Martin, 1996, s.1022. Son olarak, birim kök analizi kullanılarak da yakınsama analizi yapılabilmektedir. ...
Yakınsama ve dijitalizasyon, küresel ekonominin iki temel bileşenidir. Yakınsama, yoksul ekonomilerin kişi başına düşen gelir düzeylerinin zengin ekonomilere göre daha yüksek oranda arttığını varsayar. Bu tanıma göre, yoksul ekonomilerin gelir düzeyleri ile zengin ekonomilerin gelir düzeyleri, zaman içinde bazı varsayımlar altında aynı düzeye yaklaşmaktadır. Dijitalizasyon ise bir ekonomide üretimi, dağıtımı ve insanların günlük yaşamını kolaylaştırmak ve ekonomik büyümeyi iyileştirmek için bilginin dijitalleştirilmesi süreci olarak tanımlanabilir. Bu çalışmanın amacı, 2012-2020 yıllarında Türkiye’nin Düzey-1 bölgelerinde dijitalizasyonun yakınsama üzerindeki etkisini incelemektir. Çalışmada kullanılan veriler, Bilgi Teknolojileri ve İletişim Kurumunun Elektronik Haberleşme İl Düzeyindeki Yıllık İstatistik Bülteni ve Türkiye İstatistik Kurumu’ndan elde edilmiştir. Dijitalleşme için seçilen değişkenler sabit telefon erişim sayısı, sabit telefon santral kapasitesi, mobil telefon abonelik sayısı, geniş bant abonelik sayısı ve fiber uzunluğudur. Ayrıca, internet kullanıcılarının yüzdesi, okuryazar 15 yaş ve üzeri eğitim düzeyi, lise okullaşma oranı ve kentsel nüfus analizde kullanılmıştır. Söz konusu değişkenleri Türkiye’nin Düzey-1 bölgeleri kapsamında haritalandıran ve bölgeler arasındaki farkları istatistiksel veriler kullanılarak yorumlayan bu ön çalışmada, dijitalizasyonun daha fazla olduğu bölgelerde kişi başına düşen gelirin ve kentsel nüfusun daha fazla olduğu ve Türkiye’nin doğusunda dijitalizasyonun kullanımını, altyapısını ve kullanım yeteneklerini iyileştirmek için yeniliklere ihtiyaç duyulduğu gözlemlenmiştir.
... An economy's competitiveness is defined as the set of institutions, policies, and factors that determine the economy's level of productivity [1]. The level of productivity determines the rates of return obtained by investments in the economy, which in turn determines the economy's growth rate [1][2][3][4][5][6][7][8]. ...
... Modeling political corruption. Many factors such as education, technological progress, macroeconomic stability, good governance, business firm sophistication, and market efficiency affect productivity and competitiveness [2][3][4][5][6][7][8][9][27][28][29][30][31][32][33]. Here we focus on how political corruption affects the growth of a country's wealth [34]. ...
Politicians world-wide frequently promise a better life for their citizens. We find that the probability that a country will increase its {\it per capita} GDP ({\it gdp}) rank within a decade follows an exponential distribution with decay constant . We use the Corruption Perceptions Index (CPI) and the Global Competitiveness Index (GCI) and find that the distribution of change in CPI (GCI) rank follows exponential functions with approximately the same exponent as , suggesting that the dynamics of {\it gdp}, CPI, and GCI may share the same origin. Using the GCI, we develop a new measure, which we call relative competitiveness, to evaluate an economy's competitiveness relative to its {\it gdp}. For all European and EU countries during the 2008-2011 economic downturn we find that the drop in {\it gdp} in more competitive countries relative to {\it gdp} was substantially smaller than in relatively less competitive countries, which is valuable information for policymakers.
... Although it does not have specific 'convergence interpretations' (it could be considered a measure of 'mobility'), leapfrogging can affect the measure of sigma-and beta-convergence. The names assigned to the two different types of convergence must be attributed to the first works on the topic (namely, Barro and Sala-i-martin (1992) and Sala-i-Martin (1996)), where a variance measure was used to measure sigma-convergence, while a regression approach was exploited to estimate beta-convergence. Later works brought some changes in the methodology to measure convergence, especially to meet some unaddressed challenges such as measuring leapfrogging or allowing for non-linearities (Fiaschi and Lavezzi 2003;O'Neill and Van Kerm 2008). ...
... GI-poorer regions actually grew somewhat faster in terms of registered GIs, but the current convergence rate suggests that inequality will persist for many years to come. In a research perspective, one could even argue whether full convergence will ever be reached or, as often maintained in classical studies on income inequalities Sala-i-Martin 1996), whether different equilibria are to be expected, based on specific characteristics of each region. ...
Within the EU agricultural policy, geographical indications (GIs) are assigned the role of adding value to local food productions. The use of GIs has traditionally been heterogeneous across EU regions, and stimulating their uptake in non-traditional GI regions was presented as one of the motivations for the new 2024 GI Regulation. This paper investigates the issue of inequality in the spatial GI distribution. Specifically, the objectives of the work are: (i) to examine the spatial patterns of GI registration, exploiting specific techniques of inequality analysis; (ii) to investigate the existence of convergence processes across EU regions in terms of registered GIs; and (iii) to estimate the impact of the last GI Regulation in fostering convergence processes. The first part of the analysis relies on the application of several Gini index decompositions, highlighting the large role played by Protected Designations of Origin and by cross-national factors in driving GI inequalities up. Convergence is observed to be in place, but the very low rate at which it is occurring calls for a more robust policy intervention. In this respect, the impact analysis, performed using an interrupted time series regression approach, highlights no significant effect of the last GI reform in stimulating convergence.
... We assessed fertility convergence over different measures of educational attainment by testing for β -convergence 17,18 , i.e., the catching-up of countries "lagging behind" in a specific indicator. β -convergence can be estimated with a traditional growth-convergence framework whereby the growth rate in an outcome over time is regressed on the base outcome, as per the following equation: ...
... Equation 1 has been vastly employed in the macroeconomic growth convergence literature [17][18][19][20] , and has also been used to assess cross-country convergence in fertility rates and other sociodemographic outcomes over time 5,[21][22][23] . A negative sign on the β coefficient indicates that lagging countries are catching up with leading countries (converging), while a positive sign means that laggards are falling farther behind (diverging). ...
This paper shows that the level and timing of fertility are converging strongly over different measures of educational attainment using 65 years of data from 146 countries. Global convergence patterns are primarily driven by high-income societies, while sub-Saharan Africa is the world region that is converging most slowly, if not converging at all. Most importantly, levels of education matter heavily for explaining strength and variation in global fertility convergence, with two intersecting educational gradients suggesting: (i) stronger convergence over tertiary education followed, in turn, by secondary and primary; (ii) stronger convergence over education completed relative to education attended. Our findings provide important insights for addressing key challenges in global development and demography, and for informing policymakers as they evaluate the suitability of specific educational policies aimed at further narrowing inequalities between societies—such as supporting higher education as well as the successful completion of targeted educational cycles.
... σ-convergence is typically identified by examining the standard deviation of the logarithms of labour productivity (or GDP pc) between regions over successive periods. When considering these two types of convergence, it should be pointed out that while β-convergence is a necessary condition for σ-convergence, it is not sufficient (Sala-i-Martin 1996). ...
... This approach allowed verifying the presence of convergence, and their graphic presentation. A broad description of the method for measuring convergence and the accompanying assumptions was presented by Sala-i- Martin (1996) and Batóg (2010). The Global and local Moran's I statistics (Moran 1950) were used to assess spatial correlations (Implication 3). ...
In the field of economics and regional research, income convergence between countries and regions has been analysed since the 1980s. At the beginning of the 21st century, a number of articles addressing income convergence of European Union (EU) countries were published, which was among many topics related to the accession of 12 countries to the EU between 2004 and 2007. The inspiration for this study was the variety of conclusions about convergence in various groups of EU regions. The purpose of this article is to discuss the existing knowledge on the economic convergence of the EU regions and to expand it with the research results covering the period 2000–2021. The results confirm the convergence of incomes within EU regions, which translates into a change in the geographical distribution of income in the EU, slowly blurring the boundaries between the regions of the 2004/2007 enlargement countries and the countries located in the west and south of the EU. At the same time, no convergence within most of the biggest EU countries nor regions with well-developed knowledge-intensive sectors, were recorded.
... Although the two concepts of convergence are related, they are conceptually different: σ-convergence studies how the distribution of income evolves, whereas β-convergence studies the mobility of income within the same distribution. Notably, 'β-convergence is a necessary, but not sufficient condition for σ-convergence' (Sala-i-Martin 1996). 3 In this study, we examine the dynamics of bank cost efficiency convergence amid significant economic shocks and policy shifts. ...
... Similar to the exposition in Sala-i-Martin (1996), the dependent variable in the above equation is the approximate growth rate of bank efficiency from t-1 to t, if the partial correlation between the growth rate in efficiency over time and its initial efficiency level is negative (i.e. a negative and significant coefficient of θ), it implies unconditional β-convergence. The larger the absolute value of the coefficient, the greater the tendency of convergence. ...
This study examines the evolving convergence of bank cost efficiency in ASEAN from 1994 to 2022, focusing on the determinants influencing this trend during distinct periods. We aim to unravel the progression of convergence drivers and their policy implications. We employ the true fixed effect stochastic frontier approach (SFA) to estimate bank cost efficiency and identify a movement toward uniform efficiency across ASEAN banks using β-convergence and σ-convergence analyses. By examining conditional β-convergence in various sub-periods, we found that the initial convergence (1994–2000) was driven by economic growth and regulation, particularly aiding less developed economies. Post-crisis (2001–2009), banks in wealthier countries led efficiency gains, albeit with growing barriers from market concentration and regulatory intensity. As the sector matured (2010–2015), traditional drivers like GDP growth and regulation attenuated in influence, while bank size and national wealth supported further convergence. In the latest phase (2016–2022), traditional convergence drivers waned, signalling a shift in the banking landscape shaped by potential new factors such as fintech and consumer behaviour changes. The evolving nature of these determinants highlights the need for ASEAN banking policies to adapt proactively. Policymakers should consider flexible, forward-looking regulations that support efficiency convergence and sectoral integration amidst a rapidly changing financial landscape.
... Publication selection bias is the consequence of any type of preferential reporting of statistically significant findings, including the file drawer problem, publication bias, reporting bias, specification searching, questionable research practices, and p-hacking. As famously exposed by Leamer (1983), reported economic findings are the consequence of the particular specification of innumerable combinations of independent variables, models, and methods (Sala-i Martin, 1997). Evidence of exaggerated significance and effect size has been widely seen throughout the economics research literature. ...
... The study by Abreu et al. (2005) provides an excellent example of an early meta-analysis in economics that covers a highly relevant topic, the "legendary" measure of = 2% rate of conditional convergence between income levels of poor and rich countries. This value of 2%, which was established for several conditions and samples by, among others, Sala-i Martin (1996), has been a major stylized fact in the growth literature for many years. It posed a puzzling case to the baseline neoclassical growth model of Solow, Swan and Ramsey, which would predict a much faster catching-up of poor countries through capital accumulation. ...
Over the past several decades, meta-analysis has emerged as a widely accepted tool to understand economics research. Meta-analyses often challenge the established conventional wisdom of their respec- tive fields. We systematically review a wide range of influential meta-analyses in economics and compare them to “conventional wisdom.” After correcting for observable biases, the empirical economic effects are typically much closer to zero and sometimes switch signs. Typically, the relative reduction in effect sizes is 45%–60%.
... The analysis of territorial inequalities is not a recent phenomenon; several researchers have already investigated the positive convergence prospects and catching-up potential of peripheral regions (e.g., the convergence process of nation states in Barro & Sala-i-Martin, 1992;Sala-i-Martin, 1995;Quah, 1996). Convergence between regions in the European Union has been the subject of study for a long time, as there are significant differences in income and living standards within countries and regions. ...
Purpose:
The aim of the paper is to examine the changes in specific income and population center of gravity in the NUTS3 (county level) regions of the European Union over the last 15 years, particularly in the light of the impact of the various crises (economic and financial crisis, pandemic). This may also shed light on how far the spatial center of gravity of population and income are from each other, and whether different types of crises have led to convergence or divergence.
Design/methodology:
In my analysis, I use the method of spatial potential calculation to determine the center of gravity, and then plot their location and temporal changes using a geographic application. In addition, I investigate the degree of inequality using the Hoover index, which can be calculated as the correlation of the two indicators. This provides an opportunity to gain a deeper understanding of the differences revealed by the center-of-gravity analysis.
Findings:
For Europe as a whole, 22.31% of income would have to be transferred between NUTS3 regions in 2005 to achieve a distribution equal to the population share of the regions, while by 2020 the same value has slightly decreased. The results also show year-to-year variations, i.e. from the first wave of the economic and financial crisis to the end of the second wave, the Hoover index showed an increase in inequalities between regions, and this was also true to a small extent for the first year of COVID. However, different types of crises shifted both centers of gravity significantly, with different directions.
Research/practical implications:
With the results of this study, broader knowledge about spatial potential calculation. It can be used for detecting the intervention points of spatial development decisions. By tracking changes in the spatial potential, better forecast can be made in case of a new shock situation.
Originality/value:
One of the main added values of the study is that it highlights the differences in the spatial center of gravity of different types of indicators, and that shocks of different nature affect the trends and expected changes of some indicators to different degrees. It also shows that an economic shock can cause a shift of 30-40 kilometers in the spatial center of gravity over a period of up to one year.
... Beta-convergence is a process by which the poorest performers develop faster than the leading performers and therefore catch up with them. It is linked to the empirical definition of convergence postulated by growth models (Sala-i-Martin, 1996) and is used to measure whether regions starting with poor performance develop faster than high-performing regions. Absolute (or unconditional) beta-convergence is estimated with the following regression model: ...
This report examines convergence in human capital – specifically that of individuals with tertiary education – in the EU, analysing three phases: creation, utilisation in the labour market and mobility. The analysis finds that Member States are performing better in creating human capital through education but finds disparities in the other two phases, with differences in labour market opportunities resulting in different mobility flows. A cost estimate exercise reveals that a country’s lack of attractiveness to talented individuals has economic repercussions, and that loss of human capital through emigration is not balanced by returning or incoming talent. If the imbalance in human capital circulation in the EU is not addressed, this may hurt convergence, leaving Member States and regions without the skills to negotiate the twin transition successfully. An examination of policies to attract talent illuminates the need for long-term initiatives and to link them with labour market opportunities.
... This has led to a shift toward the concept of conditional convergence, where economies converge to their own steady-state levels determined by national factors such as savings rates, human capital, technological capabilities, and institutional quality (Mankiw, Romer, & Weil, 1992; Barro & Sala-i-Martin, 2004). This nuanced understanding suggests that convergence is not a universal process but depends heavily on the structural characteristics and policies of each economy (Sala-i- Martin, 1996). ...
This study delved into the dynamic impact of financial development on income convergence among countries at varying stages of economic development, employing Functional Data Analysis (FDA) to capture the temporal evolution of this relationship. By treating key economic variables such as GDP per capita and the Financial Development Index (FDI) as smooth functions over time, we analyzed complex, time-varying interactions that traditional econometric models might overlook. This methodological approach allowed us to address our primary research questions: to what extent does financial development influence income convergence, and how effective is FDA in capturing these dynamics?
... One reason for the importance of scaling relationships is that they capture salient, robust features of a system. Sala-i-Martin found by analyzing the scaling relation between GDP growth rates and initial GDP over the thirty-year period 1960-1990 that poor countries grow slower than rich countries [19]. Sizedependent scaling of the standard deviations of firm growth rates and country growth rates are reported in [20] and [21]. ...
We analyze the size dependence and temporal stability of firm bankruptcy risk in the US economy by applying Zipf scaling techniques. We focus on a single risk factor-the debt-to-asset ratio R-in order to study the stability of the Zipf distribution of R over time. We find that the Zipf exponent increases during market crashes, implying that firms go bankrupt with larger values of R. Based on the Zipf analysis, we employ Bayes's theorem and relate the conditional probability that a bankrupt firm has a ratio R with the conditional probability of bankruptcy for a firm with a given R value. For 2,737 bankrupt firms, we demonstrate size dependence in assets change during the bankruptcy proceedings. Prepetition firm assets and petition firm assets follow Zipf distributions but with different exponents, meaning that firms with smaller assets adjust their assets more than firms with larger assets during the bankruptcy process. We compare bankrupt firms with nonbankrupt firms by analyzing the assets and liabilities of two large subsets of the US economy: 2,545 Nasdaq members and 1,680 New York Stock Exchange (NYSE) members. We find that both assets and liabilities follow a Pareto distribution. The finding is not a trivial consequence of the Zipf scaling relationship of firm size quantified by employees-although the market capitalization of Nasdaq stocks follows a Pareto distribution, the same distribution does not describe NYSE stocks. We propose a coupled Simon model that simultaneously evolves both assets and debt with the possibility of bankruptcy, and we also consider the possibility of firm mergers.
... PDB dibagi atas empat komponen yaitu konsumsi, investasi, belanja negara serta ekspor dan impor. Persamaan yang banyak digunakan untuk menjelaskan pembentukan PDB adala (Mankiw, 2009) : Namun, model pertumbuhan endogen yang lebih baru seperti yang diajukan oleh Sala-i-Martin (1996) berpendapat bahwa pertumbuhan ekonomi dipengaruhi oleh faktor-faktor internal termasuk inovasi dan akumulasi pengetahuan. Keterbukaan perdagangan dalam konteks ini, dianggap sebagai salah satu mekanisme utama yang dapat mendorong pertumbuhan ekonomi melalui transfer teknologi dan peningkatan efisiensi (Frankel & Romer, 1999). ...
Penelitian ini bertujuan untuk menguji pengaruh FDI, remitansi, inflasi dan keterbukaan pedagangan terhadap pertumbuhan ekonomi di 36 negara anggota OKI selama periode 2019-2023. Análisis regresi panels data dengan pendekatan fixed effect generalized least squares (FE-GLS) digunakan untuk menguji hipotesis penelitian. Hasil penelitian menunjukkan bahwa FDI dan remitansi memiliki pengaruh positif dan signigikan terhadap pertumbuhan ekonomi, konsisten dengan teori ekonomi. Sebaliknya, inflasi dan keterbukaan perdagangan tidak menunjukkan hubungan yang signifikan dengan pertumbuhan ekonomi. Temuan ini mengindikasikan bahwa faktor-faktor lain di luar variable yang diteliti, seperti kualitas institusi dan kebijakan pemerintah, emmainkan peranting dalam menentukan tingkat pertumbuhan ekonomi di negara-negara OKI
... Contrary to expectations, early studies based on cross-sectional models estimated a convergence rate of approximately 2% (Baumol, 1986;Sala-i-Martin, 1990, 1992;Mankiw et al., 1992;Sala-i-Martin, 1996). These studies could not account sufficiently for unobservable variations between economies, hence panel models with fixed effects were used in subsequent research (Islam, 1995;Canova and Marcet, 1995;Caselli et al., 1996;De la Fuente, 1997, 2000Pesaran et al., 1997;Lee et al., 1998;Tondl, 1998;Rodriguez, 2008;Barro, 2012Barro, , 2016Acemoğlu and Molina, 2021;Kremer et al., 2021). ...
The study of regional fiscal convergence is a recent extension of the neoclassical growth theory. Various studies have shown the existence of fiscal convergence across countries or states in federally governed countries. This paper tests the growth theory on income and fiscal variables differently in a centrally ruled country. Therefore, we estimate spatial and non-spatial panel models from 2004 to 2022 for Türkiye. A general-to-specific methodology is applied for selecting an appropriate model to determine spatial interactions of the variables by using the panel data at the level of 81 Turkish provinces. The Ordinary Least Squares (OLS) estimation results from the non-spatial model partially validate the growth theory as the study does not find evidence of absolute convergence for government expenditures. The results, however, confirm the conditional convergence for all variables. The Maximum Likelihood (ML) method is applied for the estimation of the dynamic and static spatial panel models to explain their spatial interactions. The ML findings are consistent with the OLS results. Moreover, unlike direct and total effects, it is not possible to define indirect effects explaining spatial spillover effects in the short and long terms.
... This triggered many empirical studies in the 1990s to verify the existence of such a hypothesis (Barro and Sala-i-Martin 1995). The first results showed the possibility of beta convergence when poor regions grow more than rich ones and sigma convergence when the dispersion of per capita income between said regions tends to decrease (Sala-i-Martin 1996). This idea was questioned, especially that of beta convergence, because it assumes that all regions tend to converge to the same stationary state, giving rise to the conditional convergence concept (Mankiw et al. 1992). ...
In this paper, we use trends in GDP gaps per capita or relative GDP per capita indicator as an aggregate alternative measure to show regional per capita income inequality between the states of Mexico. The indicator compares each state's gross domestic product per capita (GDPpc) with the annual average of each year and 2019; this allows for evaluating growth performance before and after the COVID-19 pandemic. The econometric method is a spatial dynamic panel, and the convergence–divergence model is conditioned to the behavior of the fiscal policy followed in each state: The fiscal policy indicators are current expenditure and public investment. In general, it is concluded that the amounts of current spending and public investment, in an active fiscal policy context, tend to favor states with higher relative per capita income, which is why an increase in regional inequality is observed. However, it tends to affect low-income regions more, with higher ratios of current spending and investment to GDP, which reduces regional inequality. Therefore, the short-term effects of active fiscal policy to reduce regional disparities can be neutralized.
... Following the literature on sigma-convergence within countries (e.g. Sala-i Martin 1996;Persson 1997;Young et al. 2008), we use the unweighted standard deviation of log GDP per capita as our baseline measure of income dispersion. Yet, our results are robust to alternative measures, as we show below. ...
This paper shows that nineteenth-century industrialization is an essential determinant of the pronounced changes in economic prosperity across German regions over the last 100 years. Using novel data on economic activity in 163 labor market regions in West Germany, we find that nearly half of them experienced a reversal of fortune, moving from the lower to the upper median of the income distribution or vice versa, between 1926 and 2019. Exploiting plausibly exogenous variation in access to coal, we show that early industrialization led to a massive decline in the per capita income rank after World War II, as it turned from an asset to economic development into a liability. We present evidence consistent with the view that early industrialization created a lopsided economic structure dominated by large firms, which reduced adaptive capacity and local innovation. The (time-varying) effect of industrialization explains most of the decline in regional inequality observed in Germany in the 1960s and 1970s and more than half of the current North-South gap in economic development.
... Yakınsama hipotezi, sigma (σ) yakınsaması ve beta (β) yakınsamasından oluşmaktadır. sigma yakınsaması, seçili ekonomilerin net kişi başına düşen GSYİH (Gayri Safi Yurt İçi Hasıla) yakınsamalarını incelerken, beta yakınsaması fakir ülkelerin zengin ülkelere oranla daha hızlı büyüdüğü varsayımına dayanmaktadır (Sala-i Martin, 1996, s. 1020. Net kişi başına düşen GSYİH verilerinin kullanıldığı bu çalışmada sigma yakınsamasının olup olmadığı incelenmiştir. ...
Solow modelinin çıkarımlarından olan yakınsama hipotezi, gelişmişlik düzeyleri farklı olan ekonomilerin zamanla birbirine yaklaşacağını öngörmektedir. Literatürde yakınsama hipotezini test etmek üzere iki tür yakınsama kavramı kullanılmaktadır. Bunlar; sigma (σ) yakınsaması ve beta (β) yakınsamasıdır. Net kişi başına düşen GSYİH verilerinin kullanıldığı bu çalışmada ise sigma yakınsamasının olup olmadığı incelenmiştir. Asya Kaplanları (bir diğer adıyla Asya’nın Dört Küçük Ejderhası), Hong Kong, Güney Kore, Singapur ve Tayvan ekonomilerini ifade etmek için kullanılmaktadır. Yapılan bu çalışmada, 1960 yılından bu yana hızlı bir sanayileşme sürecine girerek [1]yüksek büyüme performansı sergileyen Asya Kaplanları’nın 1990-2020 dönemi net kişi başına düşen GSYİH verileriyle birbirlerine yakınsamaları birinci ve ikinci nesil panel birim kök testi ile incelenmiştir. Elde edilen bulgulara göre seçili dönemde Asya Kaplanları ülke grubu yakınsama süreci göstermemektedir.
... Obydwa pojęcia konwergencji są ze sobą powiązane -β-konwergencja jest warunkiem koniecznym, ale niewystarczającym do wystąpienia σ-konwergencji (Nowak, 2007, s. 75). Analiza konwergencji β została spopularyzowana przez Barro i Sala-Martina (Barro i Sala-i-Martin, 1992;Sala-i-Martin, 1996a, 1996b, 2002 i mimo krytyki ze strony niektórych badaczy jest powszechnie stosowana z uwzględnieniem zauważonych ograniczeń (Alexe, 2012;Czasonis i Quinn, 2012;Grzelak i Kujaczyńska, 2013;Kaitila i in., 2007;Kusideł, 2013;Schadler i in., 2006;Siwiński, 2012;Walczak, 2012). Aby zweryfikować hipotezę o występowaniu absolutnej β-zbieżności, oszacowano następujące równanie (Matkowski i Próchniak, 2013): ...
Dynamiczne i głębokie zmiany w środowisku naturalnym naszej planety wymuszają przedefiniowanie dotychczasowych modeli konsumpcji i produkcji. W tym kontekście koncepcja zrównoważonego rozwoju staje się jedną z najważniejszych determinant kształtujących procesy gospodarcze oraz decyzje konsumentów, przedsiębiorstw i państw, a działania w tym zakresie muszą być podejmowane na poziomie globalnym. Szczególne miejsce w tym obszarze zajmuje Unia Europejska, która postawiła sobie za cel osiągnięcie neutralności klimatycznej do 2050 roku. Jest to zarówno wyzwanie, jak i szansa dla europejskiej gospodarki. To ambitne założenie ma zostać osiągnięte przez połączenie działań podejmowanych jednocześnie w obszarze transformacji cyfrowej i środowiskowej. Przedstawiona monografia stanowi próbę odpowiedzi na pytania, w jaki sposób stawić czoła najważniejszym przeobrażeniom związanym z transformacją cyfrowo-środowiskową oraz przemianami społecznymi i globalnymi.
... Obydwa pojęcia konwergencji są ze sobą powiązane -β-konwergencja jest warunkiem koniecznym, ale niewystarczającym do wystąpienia σ-konwergencji (Nowak, 2007, s. 75). Analiza konwergencji β została spopularyzowana przez Barro i Sala-Martina (Barro i Sala-i-Martin, 1992;Sala-i-Martin, 1996a, 1996b i mimo krytyki ze strony niektórych badaczy jest powszechnie stosowana z uwzględnieniem zauważonych ograniczeń (Alexe, 2012;Czasonis i Quinn, 2012;Grzelak i Kujaczyńska, 2013;Kaitila i in., 2007;Kusideł, 2013;Schadler i in., 2006;Siwiński, 2012;Walczak, 2012). Aby zweryfikować hipotezę o występowaniu absolutnej β-zbieżności, oszacowano następujące równanie (Matkowski i Próchniak, 2013): ...
Dynamiczne i głębokie zmiany w środowisku naturalnym naszej planety wymuszają przedefiniowanie dotychczasowych modeli konsumpcji i produkcji. W tym kontekście koncepcja zrównoważonego rozwoju staje się jedną z najważniejszych determinant kształtujących procesy gospodarcze oraz decyzje konsumentów, przedsiębiorstw i państw, a działania w tym zakresie muszą być podejmowane na poziomie globalnym.
Szczególne miejsce w tym obszarze zajmuje Unia Europejska, która postawiła sobie za cel osiągnięcie neutralności klimatycznej do 2050 roku. Jest to zarówno wyzwanie, jak i szansa dla europejskiej gospodarki. To ambitne założenie ma zostać osiągnięte przez połączenie działań podejmowanych jednocześnie w obszarze transformacji cyfrowej i środowiskowej.
Przedstawiona monografia stanowi próbę odpowiedzi na pytania, w jaki sposób stawić czoła najważniejszym przeobrażeniom związanym z transformacją cyfrowo-środowiskową oraz przemianami społecznymi i globalnymi.
https://wydawnictwo.ue.poznan.pl/book.html?isbn=978-83-8211-244-3
... landen Bron: Sala-i- Martin, 1996Martin, , p. 1033 In het kielzog van de studies van Barro en Sala-i-Martin is er een groot aantal soortgelijke onderzoeken uitgevoerd die veel stof hebben doen opwaaien (Durlauf, 1996;Quah, 1996). Critici hebben ten eerste gewezen op het van belang de zogenoemde clubconvergentie: convergentie treedt niet op tussen alle gebieden, maar alleen tussen gebieden met vergelijkbare structuurkenmerken en initiële condities (op het gebied van technologie, instituties, et cetera). ...
This book is An Introduction to Evcolutionary Economics
... From the point of view of the problems of the article, it is worth mentioning the regression model that integrates the convergence assessment based on the relative rate of change in land productivity and the coefficient of variation (convergence). This approach can be useful for those who want to deepen this type of research and obtain results that facilitate more detailed analysis and discussion (Sala-i-Martin 1996). ...
... Debates center on conditional convergence, where effective economic policies and institutions are crucial for convergence (Sala-i-Martin, 1996). Additionally, concerns about inequality and distribution arise due to concentrated ownership of physical capital, highlighting the need for policies that ensure inclusive growth (Piketty, 2014). ...
─ In an era marked by the transformative impact of financial technology (FinTech) in the world, this study aims to analyze the implications of FinTech on economic growth within specific G20 nations such as Brazil, China, Germany, France, India, and Indonesia. Employing a robust framework encompassing panel unit root test and the Autoregressive Distributed Lag (ARDL) approach within a Panel Mean Group (PMG) framework, the analysis spans the years 2005 to 2020. The long-run PMG estimates reveal the significant impact of FinTech adoption on economic growth. Additionally, the study identifies substantial impacts of financial efficiency, development, R&D expenditure, energy consumption, population size, and capital accumulation on INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCE STUDIES Vol: 15 No: 04 Year: 2023 ISSN: 1309-8055 (Online) (pp. 1-25) Doi: 10.34109/ijefs.202315401 2 economic growth. Furthermore, our findings indicate that all economies demonstrate a prompt adjustment toward long-term equilibrium following a shock, displaying varied adjustment speeds dependent on their maturity and resilience. This research extends the existing literature by providing context-specific insights into the impact of financial and non-financial factors on economic growth in diverse G20 economies. The findings of the study suggest that governments should encourage and support the adoption of FinTech to leverage its positive impact on economic growth. Policies that facilitate FinTech innovation, collaboration, and investment can contribute to enhanced financial efficiency and development.
... β-convergence is measured when poorer economies exhibit a faster growth trend than rich ones [6] i.e. the dynamics of the given indicators in the distribution are observed. In turn, the σ-convergence establishes the "direction of spread" of the levels of development of these indicators through the reported changes based on the time of change reducing the degree of variation of the studied indicators on a regional basis [7,8]. Each of the presented models has specific features respectively advantages and disadvantages for the confirmation of convergence. ...
This study aims to analyze the effects of European funding for Central and Eastern European countries (CEE) on the degree of convergence. The model for measuring the real β-convergence and the standard regression equation when working with a general population were mainly used as part of the analysis methodology. The results confirm the tested neoclassical hypothesis that less developed countries record faster growth rates relative to stronger developed countries. The analysis finds that only in Bulgaria of the studied countries is an independent impact of EU financing on real convergence expressed in the inflation rate. When examining the unemployment rate, a relationship is found in three of the CEE countries: Lithuania, Latvia and Bulgaria. Indicators from the analysis of the relationship between EU funding and convergence through the Gini index are found only in Slovenia while the same observed relationship expressed through GDP per capita shows a negligible independent influence on real convergence in all CEE countries. The study in its entirety demonstrates the relationship between the real effects of European funding on the convergence of CEE countries through four independent variables and raises discussion questions about the approaches to measure the real effect of the budgetary resources allocated at the European level.
... The concept of beta-convergence is based on the fact that if a significant coefficient of the convergence equation is found, then poor countries grow more than rich countries, and hence the process of convergence takes place. (Sala-i-Martin, 1996). A group of countries is called σ-convergent if the variance of their real level of GDP tends to decrease over time. ...
Deforestation poses a significant environmental challenge that demands global efforts to address, aiming to preserve forest ecosystems and promote sustainable development worldwide. This study investigates the global phenomenon of deforestation convergence from 1990 to 2020 across 149 countries, employing state transition probabilities assessed using Markov chains, dispersion indicators, and average deforestation rates. The analysis indicates a consistent decrease in dispersion indicators and average deforestation rates observed across the studied countries over three decades, coupled with high probabilities of maintaining current forest ecosystem states. These findings suggest the presence of sigma and beta convergence phenomena in the shift towards sustainable development, akin to patterns observed in economic growth.
Furthermore, our research identifies the emergence of a Kuznets curve based on deforestation growth rates and dispersion indicators relative to GDP per capita since 2010. This also suggests a potential global convergence in sustainable forest-related activities.
Hence, it is clear that coordinating environmental development policies among countries is crucial for achieving global ecological stability. This underscores the necessity for proactive measures to ensure worldwide forest conservation and sustainable management.
... Originally, sigma-convergence is constructed to evaluate if the dispersion of a certain performance index for a group of economies tends to decrease over time, and betaconvergence is used to show if poorer economies tend to grow faster than richer ones (Sala-i Martin, 1996). In this study, we introduce the concepts of pure absolute sigmaconvergence and pure beta-convergence to reflect the presence of incentive effects and catch-up effects, which are expected outcomes of incentive regulation. ...
Theoretically, incentive regulation should induce all regulated companies to reduce costs by making them residual claimants. In particular, it should stimulate relatively lower performance companies to cut more costs by an additional "stretch factor" (differentiated efficiency improvement target). This study terms the first as incentive effects and the second as catch-up effects. Using panel data from Australian electric distribution companies, the study aims to identify whether these two effects exist and assess the outcomes of the regulatory reform implemented in 2012. To achieve this, the paper adopts convergence indexes developed by Horta & Camanho (2015) and Camanho et al. (2023), substituting their DEA-based framework with the StoNEZD framework. The newly proposed convergence indexes account for environmental heterogeneity and stochastic error, reflecting purely performance changes due to management efforts in daily operations. Empirical results confirm the existence of both effects, implying that the 2012 reform has produced the expected results.
JEL classification C13 · C14 · L51 · L94
... It amounted to 0.1928 in 2004 and 0.2196 in 2013 in Poland and, respectively, 0.3799 and 0.3671 in Ukraine. This means that while in Poland the condition for sigma-convergence was not fulfilled (this condition is a drop of the estimated standard deviation) [Sala-i-Martin 1996, Quah 1996c, Markowska-Przybyła 2010, the calculation results for Ukraine fulfilled this condition. ...
The aim of the paper is to compare the process of regional convergence in Poland and Ukraine, with special regard to its direction and dynamics. Regional convergence is widely discussed in the literature, and has gained in importance in the context of European integration, especially in the past decade. Less attention is devoted to the process of convergence of regions of European states which are not associated with the European Union. The authors attempt to fill this gap, in particular to the extent to which they devote attention to the processes of regional convergence in Ukraine. In the study the authors put forward the hypotheses that the processes of regional convergence in Poland and in Ukraine occur in entirely different economic conditions, and therefore their direction and dynamics differ significantly. The target period of the analysis covered the years 2004–2013, while the scope of this research was extended into the 1990s and described in the section of the article which presents the specifics of economic growth and changes in the three-sector structures, providing the context for regional convergence in comparable countries.
... As a result, the development paths of some regions have improved, while others have failed to adapt to the new challenges. The analysis of territorial disparities is not a recent phenomenon, several researchers have already examined the positive convergence potential and catching-up potential of peripheral regions (e.g. the convergence process of nation states in Barro & Sala-i-Martin, 1992;Quah, 1996;Sala-i-Martin, 1995). In catching up, we need to distinguish between two different processes, which are positive and negative convergence (Szendi, 2016). ...
Territorial economic and social disparities remain a major problem for the European Union today, especially in Eastern Europe. The aim of this study is to analyse the impact of the economic and social shocks of the 2000s (the economic and financial crisis of 2008-09 and the COVID-19 pandemic) on the economies of four Central Eastern European countries (Czech Republic, Slovakia, Poland, Hungary). The study presents county-level differences in gross value added with classical descriptive statistics, inequality indices, convergence analyses and spatial autocorrelation. The results show that the impact of the shocks of the 2000s varies across counties, which led to different paths of recovery. Spatial autocorrelation is significant,
but patterns remain stable through the period of exogenous shocks.
... In order to empirically study convergence, we follow the approach of Califano & Gasperin (2019). We use two measures that reflect different aspects of convergence: β convergence and σ convergence (Sala-i-Martin, 1996). On the one hand, (absolute) β convergence is calculated by correlating the initial value of labor productivity in the manufacturing subsystem (in log terms) with its growth over the period: ...
Mediterranean economies (Italy, Spain, Portugal and Greece) exhibit important structural weaknesses, such as low levels and disappointing growth of labour productivity that condition their growth model and raise doubts about the viability of their recent transition from debt-led to export-led growth. With this in mind, this chapter aims to analyse the extent and the drivers of labour productivity convergence of Mediterranean economies with the group of more developed EU countries over the period 1995–2017. To contextualize their convergence, we compare it with the group of Central and Eastern European (CEE) countries. We take the manufacturing subsystem as the unit of analysis, making use of the input–output tables to consider productivity spillovers across activities. Our results show that Mediterranean economies have failed to achieve significant β and σ convergence over the period. This contrasts with the performance of CEE countries, which have experienced successful convergence driven by a catching-up process in the capabilities that are required to produce more sophisticated goods.
... .1. Les différentes formes de convergenceLa notion de convergence a rencontré un grand succès et a connu de nombreux développements dans des contributions visant à élaborer de nouvelles techniques pour la tester(Baumol, 1986 ;Barro et Sala-i-Martin, 1997) ou dans des applications à différents pays et régions(Sala-I-Martin, 1996 ;Hossain, 2000 ;Persson, 1997). Deux approches de la convergence se distinguent de ces recherches : la β-convergence et la σ-convergence.1 Cartes disponibles sur demande aux auteurs. ...
L’objectif de cet article est d’explorer la nature des dynamiques de l’emploi dans les territoires d’industrie en France sur la période 2014 à 2021. Deux méthodes d’investigation complémentaires sont déployées. La première s’appuie sur le modèle des chaînes de Markov en vue d’analyser la croissance relative des territoires d’industrie et mesurer les mouvements dans la distribution des taux d’emploi. La seconde, plus récente, teste l’hypothèse de convergence en clubs, elle complète la précédente en précisant et identifiant chacun des territoires faisant l’objet d’une mobilité au sein de la distribution. Les résultats mettent en avant l’hétérogénéité des processus de croissance et de convergence des territoires d’industrie ainsi que l’absence d’une trappe à industrie.Classification JEL : R11, C14, O42, R15.
... Following Solow (1956) and Swan (1956), a large number of growth studies have aimed to test the -convergence hypothesis in per capita incomes across countries and revealed that the income convergence hypothesis is valid among structurally similar countries or regions (Sala-i-Martin 1990, 1996Barro 1991;Mankiw et al. Content courtesy of Springer Nature, terms of use apply. ...
This study aims to construct a sound theory of consumption convergence and empirically test its viability. To do this, we employ a Solovian framework in which the Keynesian exogenous savings-consumption allocation rule plays a crucial role. We demonstrate that consumption convergence performance is determined by both the average propensity to save (the indirect effect) and the average propensity to consume (the direct effect). In the empirical section, we use a system GMM estimator to test our consumption convergence equation on a panel data set of 177 countries and four income groups from 1970 to 2019. Our empirical findings indicate (i) absolute consumption convergence within high- and low-income country groups; (ii) strong evidence of conditional consumption convergence within high-, upper-middle-, and lower-middle-income groups; (iii) a robust and significant effect of the average propensity to save on the convergence process in high-, upper-middle-, and lower-middle-income groups; and (iv) a more robust and significant effect of the average propensity to consume in upper-middle- and lower-middle-income countries. In summary, we find that as income rises, the indirect impact plays a larger role in explaining consumption convergence, whereas the direct effect plays a smaller role. The policy implication of this conclusion is that policy makers in upper-middle- and lower-middle-income countries should restore the balance in the tradeoff between current and future consumption in favor of savings, as the former will harm consumption convergence within each middle-income group.
... Logo, as duas hipóteses seriam iguais apenas se as economias analisadas tivessem o mesmo estado estacionário. Apesar disso, ambas podem coincidir (Barro; Sala-I-Martin, 1992) e tendem a girar em torno de 2% ao ano (Firme;Simão Filho, 2014;Sala-I-Martin, 1996). (8) Por fim, testou-se, via modelos econométrico-espaciais, se os indicadores da Equação 3 podem ser explicados pelas variáveis sugeridas pela literatura (mencionadas na seção 1). ...
RESUMO: Visando resgatar a importância demográfica e social associada ao crescimento econômico, esta pesquisa adaptou a abordagem de Dunford e decompôs as oscilações do PIB per capita brasileiro entre 2006-2019 (com diferentes desagregações territoriais), em termos da produtividade (PROD), mobilização dos recursos humanos (MRHD) e força de trabalho potencial (FTP). Assim, avaliaram-se os impactos reais (baseados na própria decomposição) e potenciais (via cenários ótimos) de cada indicador sobre o crescimento econômico, bem como seus graus de correlação regional (via I de Moran), taxas de convergência (conforme Sala-i-Martin) e determinantes locais (mediante estimativas econométrico-espaciais e variáveis adicionais de controle). Os resultados indicam que, apesar da queda na produtividade, o crescimento foi sustentado por avanços na MRHD e, em menor escala, na FTP. Embora melhorias na MRHD possam gerar altas taxas de crescimento, em relação aos demais componentes, esse indicador obteve os maiores índices de correlação regional e as menores taxas de convergência. Apesar do habitual foco dado à produtividade, os modelos voltados à MRHD e à FTP obtiveram maior poder explicativo, sugerindo que seria possível propor políticas, com razoável confiança estatística, que fomentassem o uso mais adequado desses indicadores, com promissores impactos sobre o crescimento e a redução das desigualdades regionais.
... In order to estimate the beta equation, conditional beta convergence takes into account both absolute convergence and the factors that influence economic growth. Baumol established a methodology for the analyzing beta convergence in 1986 [32], and Sala-i-Martin proposed the idea of sigma convergence for the very first time in his PhD dissertation in 1990 [33]. This was also the very first time that it was employed. ...
In this study, we take into account the of modified Szász–Mirakyan–Kantorovich operators to obtain their rate of convergence using the modulus of continuity and for the functions in Lipschitz space. Then, we obtain the statistical convergence of this form. In addition, we determine the weighted statistical convergence and compare it with the statistical one for the same operator. Medical applications and traditional mathematics; one way to get a close approximation of the Riemann integrable functions is through the use of the Kantorovich modification of positive linear operators. The use of Kantorovich operators is tremendously helpful from a medical point of view. Their application is shown as an approximation of the rate of convergence in respect of modulus of continuity.
... Inputs Number of rural doctors Number of rural doctors employed in each VC Person Number of rural doctors who underwent technician training Number of rural doctors that participated in the technician training program organized by the government in each VCConvergence analysis is used to identify whether there is inequity of VC technical efficiency among different VCs and the factors that affect the convergence. There are two types of convergence analysis: α convergence and β convergence(40). ...
Introduction
Village clinics (VCs) are the foundation of the three-tiered health service system in China, delivering basic and routine outpatient services to citizens in rural China. VC technical efficiency and its convergence play a critical role in policy decisions regarding the distribution of health service resources in rural China.
Methods
This study measured VC technical efficiency (using the slacks-based measure model), its convergence (using the convergence model), and the factors that influence the convergence in Shanxi Province, China. Data were obtained from the Shanxi Rural Health Institute 2014–2018 Health Statistics Report, which involved 3,543 VCs.
Results
The results showed that VC technical efficiency was low and differed by region. There was no α convergence in VC technical efficiency, but evidence of β convergence was found in Shanxi. The main factors that influence convergence were the building area of each VC (BA), proportion of government subsidies (PGS), and ratio of total expenditure to total income of each VC (RTETI).
Conclusion
The government should increase investments in VCs and improve VC technical efficiency. Meanwhile, the government should be aware of and take measures to curb the inequity in VC technical efficiency among different regions and take suitable measures to curb this disparity.
The Sustainable Development Goals (SDGs) are an unprecedented guide to addressing sustainability challenges globally. A central issue in sustainable development debate is represented by the conver-gence problem. The aim of our paper is to construct a policy analysis model that can be used to exam-ine the cross-country convergence processes with respect to the achievement of SDGs toward the goals, based on the theory of sigma-convergence and beta-convergence The analysis covers 190 coun-tries from 2000 to 2022 and the convergence is estimated with both ordinary least square and Arella-no-Bond methods. Factors affecting the multivariate convergence process are shown. Our analysis contributes to policy-shaping to redefine strategies that allows the SDGs to be achieved, highlighting the need to define concrete and measurable objectives, with qualitative and quantitative methods at na-tional levels.
We provide a pioneering estimation of the regional Gross Domestic Product (rGDP) of the interwar Republic of Lithuania in 1923. This is the only year when a census of the interwar population was conducted, providing data necessary for the application of the Geary-Stark method of indirect estimation of regional output. We also measure productivity disparities across the regions in 1923 and 2001-2020 by Coefficient of Variation (CV), Mean Logarithmic Deviation (MLD), Gini and Theil indexes, to find out how much they have changed during the last hundred years. The main findings are that areas enclosed within the limits of contemporary counties (NUTS3 regions) ranked in this order in 1923 (by rGDP per capita, from richest to poorest): (1) Klaipėda; (2) Šiauliai; (3) Kaunas; (4) Panevėžys; (5) Marijampolė; (6) Telšiai; (7) Alytus; (8) Tauragė; (9) Utena.
Traditionally, poverty is measured in one dimension, the monetary dimension. Despite its simplicity, this approach has faced criticism for neglecting other crucial aspects of well-being such as education, health, and access to resources. This study examines multidimensional poverty convergence in Morocco using three measures and a sample of 1650 communes from 2004 to 2014. In part, this study aimed to investigate the evidence of absolute convergence. In the second part, the analysis was extended to conditional convergence. Generally, the results confirm that the overall poverty convergence is significant. However, the convergence speed was very low. The introduction of explanatory variables slightly favors the convergence process in communes, but it remains very low. Furthermore, the results confirm the negative effect of inequality on poverty convergence. Finally, the results confirm the positive effect of the Human Development Index, which contributes significantly to poverty convergence, suggesting that human development efforts can help reduce poverty. However, has a negative impact on the convergence of poverty among urban communes. This may be explained by the fact that the National Initiative for Human Development focuses primarily on rural areas. Overall, the results indicate that poverty is geographically pronounced.
This paper provides an analytical framework for the study of spatial income dynamics using the classical measures of -convergence (reduction in dispersion) and -convergence (poor areas grow more quickly than rich ones) linked by a re-ranking metric and reinterpreted based on the ‘leave no one behind’ principle. Our approach allows identifying the contribution of each territorial unit to each of the three facets of distributional change (-convergence, -convergence, and re-ranking), as well as gauging the part of each component of distributional change that corresponds to geographically neighbouring and non-neighbouring units. We illustrate our proposal by examining convergence across the census tracts of Malaga – the sixth most populated city of Spain – before and after the COVID-19 pandemic. We find that while income convergence across Malaga’s census tracts tended to improve over the period 2015–2019, this process was interrupted during the first year of the pandemic, affecting some specific census tracts. We examine our outcomes by grouping the results into deciles and districts made up of specific census tracts. Finally, we analyse the impact of neighbours on regional convergence and each of its components. This spatial decomposition highlights the crucial role of the spatial component in the convergence process.
Although the level of extreme poverty has declined in recent decades, income inequality in many countries is at historic levels, thus representing a concern. Theoretically, tourism can play a crucial role in the fight against poverty and economic inequalities, but the limited existing literature has failed to reach a general consensus about this topic. By focusing on Italy, this paper investigates the extent of the role played by tourism in pursuing a reduction in income inequalities, while also observing effects on economic growth. In fact inequalities have also been increasing in Italy, but little is known about the role that tourism has played in this process. The main findings reveal that tourism is able to reverse the actual trend of increase in dispersion in terms of per capita income which characterized the Italian provinces from 2010 to 2019. This industry can therefore be effectively used as a tool to promote both the catching up of poorer provinces with richer ones, thus narrowing the income gap, and the reduction of overall income disparities among different provinces, leading to a more uniform distribution of wealth.
El artículo analiza la relación de la adquisición de deuda pública con la desigualdad y el desarrollo económico. Específicamente, utiliza la tasa de crecimiento de deuda pública, el Índice de Gini y el Índice de Rezago Social como variables. Considera 31 entidades federativas de la República mexicana y 2414 municipios desde 2010 hasta el 2018. La metodología de convergencia absoluta y condicional y datos de panel deriva en los siguientes resultados: (I) bajo la hipótesis de convergencia condicional, los estados y municipios de México se acercaron en términos de la deuda pública per cápita en el periodo 2010-2018. La velocidad de acercamiento es mayor en los estados que en los municipios, (II) la convergencia condicional indica que la desigualdad explica de manera significativa la tasa de crecimiento de la deuda pública en los estados, pero no en los municipios, (III) el modelo de datos de panel destaca que, para seis de las ocho regiones geográficas en México, la desigualdad es importante para explicar el aumento de la deuda municipal a lo largo del tiempo. Además, en el caso de las regiones centro-norte y noreste, el Índice de Rezago Social explica significativamente la evolución de la deuda per cápita y (IV) los modelos estimados muestran diferencias regionales a lo largo del tiempo. En el caso de la región suroeste, que incluye tres de los estados con mayor rezago social, ninguno de los modelos contemplados explica la evolución de la deuda pública per cápita.
We develop a meta‐analysis of the empirical literature that estimates the impact of international trade on income convergence between countries. We find that, on average, trade tends to generate inter‐country income convergence. Especially in more recent years, we identified a preference for publishing and citing studies that report a stronger effect of trade on convergence. We also find that the effect of trade on income convergence is sensitive to the characteristics of the countries included in the sample, data structure, and estimation techniques.
Club convergence research has become a prominent focus in economic growth and development research over the past thirty years. When evaluating the degree of national well-being in studies on the convergence of living standards across various locations, gross domestic product (GDP) per capita is frequently used. Utilizing the convergence and clustering technique put out by Phillips and Sul (2007), the analysis yields a better health index. Five health indicators are included in the index. A final health index is obtained by combining the indicators using principal component analysis (PCA). Overall, the results of the study reject the notion that every district in Pakistan reaches a single state of equilibrium for the health index. Four convergence clubs were discovered after testing club convergence. The results show that health outcomes varied throughout districts, emphasizing the necessity for policies designed to lessen these spatial inequities.
In a dynamic financial ecosystem, digitalisation is supporting banks in revamping their business processes to be more efficient, reducing costs, coping with customers’ evolving demands, and keeping them abreast of market competition. This two-stage research aims to investigate three issues in Pakistan’s banking industry from 2006 to 2020: (i) banking efficiency; (ii) the impact of digitalisation on banking efficiency; and (iii) banking efficiency’s absolute and conditional convergence. In our first-stage analysis, bootstrap data envelopment analysis has been applied, which exhibits bias-corrected overall, pure, and scale efficiencies of 74, 77, and 96%, respectively. In the second-stage analysis, we executed Tobit and two-step dynamic panel data system generalised method of moments (DPDSYS-GMM) models, and the results uncover that digitalisation has a positive influence on banking efficiency. Findings confirm that return on assets, bank size, interest rate, and gross domestic product growth rate have a positive association with banking efficiency. Our research reveals that state-controlled banks outperform their private sector and special-purpose counterparts. Our DPDSYS-GMM findings validate β and σ-convergence, implying that initially, low-efficient banks caught up (converged) to the more efficient opponents, reducing cross-sectional efficiency dispersion and attaining common equilibrium. The findings of banking efficiency conditional β-convergence assert that the adoption of digital technology has played a critical role in the convergence process and that digitalisation has acted as a catalyst for less efficient banks to catch up significantly faster to their more efficient rivals. This study displays digitalisation’s disruptive influence on the overall transformation of Pakistan’s banking system in the modern era, resulting in significant efficiency gains.
The wide cross-country disparity in rates of economic growth is the most puzzling feature of the development process. This paper describes a class of models in which this heterogeneity in growth experiences can be the result of cross-country differences in government policy. These differences can also create incentives for labor migration from slow-growing to fast-growing countries. In the models considered, growth is endogenous despite the absence of increasing returns because there is a “core” of capital goods that can be produced without the direct or indirect contribution of factors that cannot be accumulated, such as land.