Economic integration and income convergence in the EU and the ASEAN

Devasmita JENA

Abstract


Abstract. In this paper, examine per capita income convergence among the countries of the EU and the ASEAN during 2000-2014 using both beta and sigma convergence and theil index of inequality in order to to explain the process of structural change contributing to the process of income convergence. Our analysis of theil index of inequality indicates that the inter-country inequality, in general, has been decreasing for GDP in the EU and the ASEAN, which is in line with the findings of β- and σ- convergence for these two groups of countries during 2000-2014. While in the case of EU, reduction in inequality in the industrial sector has positively affected the reduction in inequality in income; for ASEAN, industrial and services sector have contributed to income convergence.

Keywords. Convergence, EU, ASEAN, Theil Index of Inequality.

JEL. O00, O10, O40.


Keywords


Convergence; EU; ASEAN; Theil Index of Inequality.

Full Text:


References


Arestis, P., & Paliginis, E. (1995). Divergence and peripheral Fordism in the European Union. Review of Social Economy, 53(2), 261-283. doi. 10.1080/00346769500000025

Armstrong, H.W. (1995). Convergence among regions of the European Union 1950-1990, Papers in Regional Science, 74(2), 125-142. doi. 10.1111/j.1435-5597.1995.tb00633.x

Barro, R.J. & Sala-i-Martin, X. (1991). Convergence across states and regions. Brookings Papers on Economic Activity, No.1, 107-182.

Barro, R.J. & Sala-i-Martin, X. (1992). Convergence. Journal of Political Economy, 100(2), 223-251. doi. 10.1086/261816

Barua, A, Sauernheimer, K., & Mohr, T. (2006). Globalization, unification and income inequality in Europe: Some new empirical evidence. Unpublished Paper, [Retrieved from].

Ben-David, D. (1993). Equalizing exchange: Trade liberalization and income convergence, Quarterly Journal of Economics, 108(3), 108(3), doi. 10.2307/2118404

Ben-David, D, (2001). Trade liberalization and income convergence: A comment, Journal of International Economics, 55(1), 229-234. doi. 10.1016/S0022-1996(01)00099-X

Boldrin, M., & Canova, F. (2001). Inequality and convergence in Europe’s regions: Reconsidering European regional policies, Economic Policy, 16(32), 206-253. doi. 10.1111/1468-0327.00074

Chowdhary, R., Jore, S., Thakur, R., Agrawal, K., & Geete, V. (2011). Convergence of GDP per capita in ASEAN countries. Prestige International Journal of Management and Research, 3(2), 1-9.

Chowdhury, M.K. (2005). What’s happening to per capita GDP in the ASEAN countries? An analysis of convergence, 1960-2001, Applied Econometrics and International Development, 5(3), 49-68.

Dewhurst, J.H., & Mutis-Gaitan, H. (1995). Varying speeds of regional GDP per capita convergence in the European Union, 1981-91. in H.W. Armstrong & R. W. Vickerman, (Eds). Convergence and Divergence among European Regions. (pp.22-39), London: Pion.

Dunford, M. (1996). Disparities in employment, productivity and output in the EU: The roles of labour market governance and welfare regimes. Regional Studies, 30(4), 339-357. doi. 10.1080/00343409612331349698

Hallett, E.C. (1981). Economic convergence and divergence in the European community: A survey of the evidence. in M. Hodges & W. Wallace, (Eds.), Economic Divergence in the European Community. (pp.16-31). London: George Allen and Unwin.

Kutan, A., & Yigit, T. (2009). European integration, productivity growth and real convergence: Evidence from the new member states, Economic Systems, 33(2), 127-137. doi. 10.1016/j.ecosys.2009.03.002

Leonardi, R. (1995). Convergence, Cohesion, and Integration in the European Union. New York: St. Martin’s Press.

Lim, L.K., & McAleer, M. (2003). Convergence and catching up in ASEAN: A comparative analysis. Applied Economics, 36(2), 137-153. doi. 10.1080/0003684042000174038

Marques, A., & Soukiazis, E. (1998). Per capita income convergence across countries and across regions in the European Union: Some new evidence. Paper presented at the International Meeting of European Economy. [Retrieved from].

Menon, J. (2012). Narrowing the development divide in ASEAN: The role of policy, ADB Working Paper Series on Regional Economic Integration, [Retrieved from].

Quah, D.T. (1995). Convergence empirics across economies with (some) capital mobility. Centre for Economic Performance, Discussion Paper, No.257. [Retrieved from].

Slaughter, M.J. (1997). Per-capita convergence and the role of international trade. The American Economic Review, 87(2), 194-199.

Slaughter, M.J. (2001). Trade liberalization and per capita income convergence: A difference-in-differences analysis. Journal of International Economics, 55(1), 203-228. doi. 10.1016/S0022-1996(00)00087-8

Solow, R.M. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65-94. doi. 10.2307/1884513

Solarin, S.A., Ahmed, E.M., & Dahalan, J. (2014). Income convergence dynamics in ASEAN and SAARC blocs, New Zealand Economics Papers, 48(3), 285-300 doi. 10.1080/00779954.2013.874399

Sperlich, S., & Sperlich, Y. (2012). Income development and sigma convergence in south–south agreement areas. Working Paper Series, No.12031. [Retrieved from].

Villaverde, J., & Maza, A. (2008). Productivity convergence in the European regions, 1980-2003: A sectoral and spatial approach, Applied Economics, 40(10), 1299-1313. doi. 10.1080/00036840600771361

Wang, M.S. (2012). Income convergence within ASEAN, ASEAN +3: A panel unit root approach, Journal of Applied Economic Letters, 19(5), 417-423. doi. 10.1080/13504851.2011.581203




DOI: http://dx.doi.org/10.1453/jel.v5i1.1478

Refbacks

  • There are currently no refbacks.


.......................................................................................................................................................................................................................................................................................................................................

Journal of Economics Library - J. Econ. Lib. - JEL - www.kspjournals.org

ISSN: 2149-2379

Editor: jel@ksplibrary.org Secretarial: secretarial@ksplibrary.org   Istanbul - Turkey.

Copyright © KSP Library