Analysing Convergence with a Multi-Country Computable General Equilibrium Model: PPP versus Mer

2005 ◽  
Vol 16 (6) ◽  
pp. 901-921 ◽  
Author(s):  
Peter B. Dixon ◽  
Maureen T. Rimmer
Keyword(s):  
Developing Countries ◽  
Greenhouse Gas ◽  
Purchasing Power Parity ◽  
Developed Countries ◽  
Power Parity ◽  
Cge Models ◽  
Starting Point ◽  
Wide Range ◽  
Technology Gaps ◽  
Per Capita

In studies of the greenhouse gas implications of convergence by developing countries to the per-capita GNPs of developed countries, considerable discussion has centred on whether purchasing power parity (PPP) or market exchange rates (MER) should be used in measuring per-capita GNPs. We suggest that technology gaps between developing and developed countries should be the starting point for convergence analysis rather than per-capita GNP gaps. We estimate two sets of initial technology gaps, using PPP and MER price assumptions combined with input-output data. In simulating the effects of closing technology gaps (convergence) using a dynamic, multi-country CGE model, we find: the MER/PPP distinction matters. MER-based estimates of initial technology gaps lead to higher estimates of convergence-induced growth in greenhouse-gas-emitting industries in developing countries than do PPP-based estimates. the industry detail in CGE models is valuable. Our simulations show a wide range of convergence-induced changes in output across industries.

scholarly journals Participation of women in science in the developed and developing worlds: inverted U of feminization of the scientific workforce, gender equity and retention

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Shobhana Narasimhan
Keyword(s):  
Developing Countries ◽  
Gender Equity ◽  
Purchasing Power Parity ◽  
Developed Countries ◽  
Women In Science ◽  
Power Parity ◽  
Participation Of Women ◽  
The World ◽  
Per Capita ◽  
Scientific Workforce

Abstract We consider various factors impacting the participation of women in science throughout the world, with a particular emphasis on developing countries. For the world as a whole, we find that when the percentage of women working in science in a country is plotted vs. the per capita GDP of the country (adjusted for purchasing power parity) the data fall on an inverted U-shaped ‘boomerang’ curve. Thus, as per capita wealth increases, the percentage of women in science first increases and then falls. This is in marked contrast to the (right-side-up) U-shaped curve that is well-established for the participation of women in the labor force as a whole, suggesting that there are factors in the culture of science that result in opposing trends to those observed in the general workforce. This also results in many developing countries having a much higher participation of women in the scientific workforce than is seen in economically developed countries. Contradicting previous reports to the contrary, we find a positive correlation between gender equality in science and the degree of overall gender equity in the country. Thus, we do not find evidence for the claim that greater gender equity results in the manifestation of innate gender differences in preferences for science. We find differing patterns of retention in science for women in developing and developed countries. We also briefly discuss other factors that make it difficult for women in developing countries to follow a scientific career, or to advance in their careers.

scholarly journals VIEJAS PREGUNTAS, ¿VIEJAS RESPUESTAS?: ALGUNAS REFLEXIONES EN TORNO A LA CONVERGENCIA

2001 ◽  
Vol 27 ◽  
Author(s):  
Luis Bértola
Keyword(s):  
Purchasing Power Parity ◽  
Institutional Environment ◽  
Developed Countries ◽  
Power Parity ◽  
Developed Economies ◽  
Export Sector ◽  
Economic Paradigm ◽  
Factor Markets ◽  
Per Capita ◽  
Capital Humano

A partir de una presentación del desempeño de las economías de Argentina, Brasil y Uruguay en relación a un núcleo de economías desarrolladas en 1870-1990, este trabajo se concentra en explicar el cambio desde una posición de relativamente buen desempeño de las economías rioplatenses hasta principios del Siglo XX, hacia un proceso de progresiva divergencia. El abordaje enfatiza el estudio del crecimiento de la productividad de las economías agro-exportadoras en relación a los cambios tecnológicos e institucionales producidos a lo largo de toda la cadena de producción y comercialización nacional e internacional. Igualmente se refiere a las características de los mercados de factores para la determinación de patrones de distribución del ingreso, que afectan niveles relativos del PBI per capita y de los salarios en términos de paridad de poder de compra. Las determinantes de un buen desempeño hasta la década de 1910 parecen revertirse entre 1910-1930, de la mano de cambios profundos en los paradigmas tecno-económicos y de fuertes cambios socio-institucionales en las economías desarrolladas. Parece agotarse una modalidad de inserción internacional basada en el uso intensivo de factores naturales combinados con la revolución de los transportes terrestres y marítimos, a la vez que la herencia en términos de formación de capital humano dejada por el modelo agro-exportador augura muy fuertes dificultades para insertarse en los nuevos patrones de competencia internacional. Abstract On the basis of an overview of Argentine, Brazilian and Uruguayan growth in 1870-1990 and in relation to a core of developed countries, this paper focuses on the transition which Argentina and Uruguay went through, from a high relative performance to a process of cumulative divergence. The approach emphasizes the role of productivity growth in the agrarian export sector, as related to technological and institutional changes along the whole national and international productive and commerce chain. The paper also refers to the features of factor markets in shaping the pattern of income distribution, and on real per capita GDP and purchasing power parity real wage levels. The underlying forces of the relatively successful performance until the 1910s seem to have experienced a reversal in 1910-1930, together with deep changes in the techno-economic paradigm as well as in the socio-institutional environment in the developed economies. The pattern of foreign trade, based on an intensive use of natural resources combined with the benefits of the transport revolution, both terrestrial and maritime, seemed to have come to n end. The heritage of the agrarian export-led growth in terms of poor human capital formation, anticipates the difficulties which those economies should face in relation to the emerging patterns of international competition.

Regional disparity and economic linkage in the Greater Mekong Sub-region

2014 ◽  
Vol 13 (1) ◽  
pp. 59-70 ◽  
Author(s):  
Kenji Nozaki
Keyword(s):  
Purchasing Power Parity ◽  
Design Methodology ◽  
Time Series Data ◽  
Developed Countries ◽  
Regional Disparity ◽  
Series Data ◽  
Power Parity ◽  
Regional Trade ◽  
Content Type ◽  
Per Capita

Purpose – The Greater Mekong Sub-region (GMS) is noted as an investment destination recently. However, there are few surveys about this region. In particular, direction of the regional disparity and economic linkage cannot be found, although it is inevitable to formulate economic or business policies. The paper aims to discuss these issues. Design/methodology/approach – First, the author calculated the regional GINI coefficient of the GMS, converting the per capita GDP using the purchasing power parity. Then, the trend of intra-regional trade was calculated by using the data of Direction of Trade Statistics of IMF. In addition to that, to consider the trade structures, bilateral trades of Thailand with Vietnam, Laos and Myanmar were analyzed. Findings – This paper made clear that the regional disparity of the GMS has been gradually shrinking from serious level to moderate in recent years, although it is still larger than the disparity of ASEAN original members. Two Chinese districts and Vietnam played an important role to improve the disparity. As for the intra-regional trade, it used to be very poor in the early 1990s, but is increasing in these years. There may be some signs of starting of the intra-industrial trade between Thailand and Vietnam, although trades with lower developed countries such as Laos and Myanmar are led by natural resources-related products. Originality/value – This paper is the first survey to calculate the regional disparity of the GMS with time series data. The analysis of the intra-trade among the GMS members expresses the current situation of the economic linkage of this area.

scholarly journals The Existence of Long-Run PPP: A Comparison between Developed and Developing Countries

2016 ◽  
Vol 62 (2) ◽  
pp. 88
Author(s):  
Sulistiadi Dono Iskandar
Keyword(s):  
Developing Countries ◽  
Error Correction ◽  
Purchasing Power Parity ◽  
Developed Countries ◽  
Error Correction Model ◽  
Power Parity ◽  
Correction Model ◽  
Conflicting Result ◽  
Long Run ◽  
One Step

McNown & Wallace (1989) argued that PPP will tend to holds in less developed countries due to the domination of nominal factors in the economy. In this study we try to investigate the existence of long-run PPP in eight countries consisting four developed and developing countries. Here we show that there is a strong evidence that long-run PPP holds for Germany, United Kingdom, and Chile. Furthermore, the additional tests also show that symmetry and proportionality conditions seem to hold in the three economies. As for other five economies, long-run PPP seems to be absence. Although one step general Error Correction Model and Johansen-Juselius cointegration procedure generates conflicting result, the result of both technique do not show a tendency for PPP to hold in developing countries thus rejecting argument proposed by McNown and Wallace. AbstrakMcNown & Wallace (1989) mengemukakan argumen bahwa PPP akan cenderung berlaku di negara-negara yang belum maju disebabkan adanya dominasi faktor nominal dalam perekonomian. Dalam penelitian ini kami mencoba untuk menyelidiki keberadaan dari long-run PPP di delapan negara yang terdiri dari empat negara maju dan berkembang. Hasil estimasi menunjukkan adanya bukti kuat bahwa long-run PPP berlaku pada Jerman, Inggris, dan Cile. Hasil, tes lanjutan juga menunjukkan bahwa kondisi simetri dan proporsionalitas nampak bertahan di tiga negara tersebut. Sedangkan untuk lima negara lainnya, long-run PPP tidak nampak keberadaannya. Meskipun hasil pada one step Error Correction Model (ECM) dan Johansen-Juselius cointegration procedure menghasilkan hasil yang bertentangan, namun hasil dari kedua metode tersebut konsisten tidak menunjukkan kecenderungan akan eksistensi PPP di negara berkembang.Kata kunci: Purchasing Power Parity; Tes Kointegrasi; Negara Berkembang; Negara MajuJEL classifications: F31; F4

scholarly journals Food Affordability and Economic Growth

TEM Journal ◽  
2020 ◽  
pp. 1571-1579
Author(s):  
Ruslan Mudrak ◽  
Volodymyr Lagodiienko ◽  
Nataliia Lagodiienko ◽  
Vitalii Rybchak
Keyword(s):  
Purchasing Power Parity ◽  
Functional Characteristic ◽  
Alcoholic Beverages ◽  
Power Parity ◽  
Per Capita Gdp ◽  
Food Expenditures ◽  
Per Capita ◽  
Food Affordability ◽  
Constant Prices

The conducted correlation-andregression analysis revealed a close inverse connection between the functional characteristic "share of the expenditures for food and non-alcoholic beverages in the structure of the total expenditures of the households" and the factorial characteristic "GDP per capita by purchasing power parity, at constant prices". The response of the share of food expenditures in the structure of the total expenditures of the households to per capita GDP growth corresponds to the law of diminishing returns. The pattern is manifested in the long-term period.

scholarly journals The structural characteristics of world trade and the merchandise exports of Serbia

2009 ◽  
Vol 54 (181) ◽  
pp. 55-91
Author(s):  
Radovan Kovacevic
Keyword(s):  
Developing Countries ◽  
World Trade ◽  
New Technologies ◽  
Structural Characteristics ◽  
Developed Countries ◽  
Added Value ◽  
Production Networks ◽  
International Production ◽  
Starting Point ◽  
Merchandise Trade

This paper analyses the world merchandise trade structure and the structure of Serbian merchandise exports. The analysis shows that the prominent characteristic of post-World War II world trade is more dynamic growth in the volume of manufactured goods as compared to agricultural goods. Due to the lessening share of agricultural products world merchandise trade has decreased and rapid industrialization has been fostered in developing countries. An increased share for developing countries followed the developed countries' decreasing share in world manufacturing trade. The developing countries' increased share was strongest in telecom and office equipment exports. These sectors are characterized by production fragmentation, which is being realized by transnational companies. Serbia, like the other South East European countries, has not yet managed to significantly integrate into international production networks. Serbia's most important exports are manufactured products with a low level of added value . In addition, Serbia still has a high share of primary products in its exports. A higher share of exports of goods and services in the gross domestic products (GDP) cannot be achieved without increasing imports of new technologies and equipment, i.e. without a higher investment share of the GDP. The main conclusion of this article is that the creation of a favorable investment climate and an increase in Serbia's international credit rating are the preconditions for stronger foreign direct investment (FDI), which would be the main channel for restructuring in the real sector. Creation of new small and medium enterprises (SMEs) through greenfield investment and their integration into the international production networks is the starting point for the restructuring of Serbian industrial production and merchandise export, i.e. the way of increasing the share of merchandise exports in the GDP.

The effects of the economic crisis on income convergence in the European Union

2012 ◽  
Vol 62 (2) ◽  
pp. 161-182 ◽  
Author(s):  
Nenad Stanišić
Keyword(s):  
European Union ◽  
Economic Crisis ◽  
Purchasing Power Parity ◽  
Gdp Per Capita ◽  
The European Union ◽  
Income Convergence ◽  
Power Parity ◽  
Trade Theory ◽  
Per Capita

This paper evaluates income convergence in the European Union, between “old” (EU15) and “new” member states from Central and East Europe (CEE10), and among the countries within these two groups. The GDP per capita convergence should be expected according to the exogenous economic growth model and neoclassical trade theory. The presence of σ-convergence and both absolute and conditional β-convergence is tested for on a sample of 25 European Union countries (EU25). Results confirm the existence of β-convergence of GDP per capita at purchasing power parity among EU25, but not among EU15 and CEE10 countries. σ-convergence has been confirmed among EU25 and CEE10 countries, while GDP per capita has been diverging in the EU15 group of countries. Moreover, the results reveal that recent economic crisis has reversed long-term tendencies and led to income convergence within EU15 and divergence within CEE10. During the crisis, the income differences among the EU25 countries have increased, but the scope and duration of this effect has been limited and has not affected the long term convergence path. However, the obtained long term speed of convergence is significantly lower compared with the previous researches.

scholarly journals The International Legal Regime for Biotechnology Patenting: an Appraisal from the Standpoint of Developing Countries

2014 ◽  
Vol 31 (2) ◽  
pp. 291-325
Author(s):  
Jean-Faustin Badimboli Atibasay
Keyword(s):  
Developing Countries ◽  
World Trade ◽  
Developed Countries ◽  
Legal Regime ◽  
The Core ◽  
Legal Implications ◽  
Wide Range ◽  
The World ◽  
Biological Innovations ◽  
Ipr Protection

The development of biotechnology, which promises many economic opportunities, has revived the debate over the ownership of biological resources and its derivatives, as well as the sharing of the benefits which derive from its multiple applications. At the core of the debate, is the recent marriage between intellectual property rights (IPR) and international trade, within the framework of the World Trade Organization (WTO). In this context, the need of developed countries to prevent trade distortions due to the lack of adequate IPR protection in developing countries, is weighed against the need to promote local interests in these countries. However, the legal impact of recent multilateral agreements, which address biological innovations, is still subject to controversy. An assessment of these instruments reveals divergent approaches to the issues which divide the parties concerned. This results in ambiguities and conflicts with respect to relevant provisions of these agreements. From a wide range of possible solutions discussed, industrial and developing countries might consider to review the disputed provisions in a way that attempts to harmonise the agreements and render legal implications of their respective initiatives in this area more predictable.

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