THE INTERNET AS A DETERMINING FACTOR IN ECONOMIC CONVERGENCE ACROSS COUNTRIES

This paper examines whether the Internet is a determining factor in explaining economic growth and convergence across countries when it acts as a channel of information and knowledge diffusion. Literature has identified around 140 possible growth factors, therefore given the contradictory results obtained from previous empirical studies it is crucial we understand the actual role of the Internet. Using the conditional convergence theory and a Bayesian panel data model averaging method from a sample of 100 countries between 1994 and 2017, our results demonstrate that an increase in access to the Internet is a non-determinant factor in economic convergence, being its probability of inclusion in the true growth model conditioned by the regressors included in the estimates and the time span analysed.

Research on Carbon Productivity and It's Spatial Convergence of Steel Industry in China

The Global-Malmquist-Luenberger (GML) index was applied to analyse the carbon productivity in steel industry (SICP) of 29 provinces in China from 2006 to 2017, and then the SICP was decomposed into technical efficiency change index (TC) and technical progress index (EC). On this basis, the spatial effect is introduced into the traditional convergence model to investigate the spatial convergence of SICP. The empirical results show that: (1) The overall carbon productivity of China's steel industry is at a relatively low level, showing a slow growth trend. (2) The average value of the GML index of SICP is higher than 1, showing obvious inter-provincial and regional heterogeneity. Compared with EC, TC is the leading factor that promotes the increase of SICP. (3) The spatial absolute and condition β convergence of SICP exist in the whole country and the three major regions, but the σ convergence feature is not significant. The addition of spatial factors speeds up the convergence trend, and the speed of spatial absolute β convergence is about 3 times that of the classical convergence model. At the same time, the conditional convergence rate is significantly faster than the absolute convergence, which is closely related to the differences in influencing factors such as the industrial structure, economic development level, human capital, energy consumption intensity, and R&D investment among regions. There is still much room for improvement in carbon productivity in China's steel industry, and investment in scientific research must be increased in order to achieve the upgrading of the industrial structure and technological innovation. The existence of spatial convergence requires strengthening the joint reorganization of steel enterprises between provinces and regions, making full use of the spatial spillover effects of production technology, and realizing regional green and coordinated development.

An Examination of Per Capita Income Convergence in Emerging Market Economies

The study intends to examine the convergence of per capita income in emerging market economies (EMEs) toward a steady state for the post reform period (1999–2019). Cross-sectional regression analysis has been performed for unconditional convergence and a panel data regression to find the conditional convergence in EMEs. Sigma convergence has been applied to find the dispersion of income level in EMEs. In addition, to find the impact of global financial crisis on the convergence process of EMEs, unit root test with one structural break has been applied. The findings indicate that there exists unconditional convergence among EMEs toward a common steady state. Further, the results show a significant role of all control variables except education in the growth process but prove the absence of conditional convergence in selected EMEs. The results of sigma convergence find that the dispersion of per capita income is declining in EMEs, showing the sign of sigma convergence in EMEs. However, this study provides further scope to examine per capita income convergence among EMEs by including other variables and their effect on the convergence process of EMEs.

Nexus Among Energy Consumption Structure, Energy Intensity, Population Density, Urbanization And Carbon Intensity: A Heterogeneous Panel Evidence Considering Differences In Electrification Rates

In this paper, the clustering method is used to divide the 30 provinces of the country into high, medium and low electrification rates according to the electrification rate from 2000 to 2017. The heterogeneous panel technology is used to analyze the relationship of energy consumption structure, energy intensity, population density, urbanization rate and carbon intensity. According to Cross-sectional dependence(CD) test and cross-section Im-Pesaran-Shin (CIPS) test results, the data of each panel are not in the form of same order single integer, so α convergence analysis, β absolute convergence, and β conditional convergence analysis are required. The results show that the carbon intensity of the four panels shows an α convergence; the β absolute convergence shows there is a “catch-up effect”; β conditional convergence indicates that the carbon intensity approaches their respective steady state levels; there is a long-term equilibrium relationship of energy consumption structure, energy intensity, population density and carbon intensity in all panels, but the urbanization rate has a significant impact on carbon intensity only in areas with high electrification rates. Finally, based on the results of empirical research, policy recommendations for reducing the carbon intensity in different regions are proposed.

A meta-analysis on the effects of internal migration on economic growth and convergence in the Indian states

This paper examines the trajectory of internal migration and its impact on growth leading to convergence in India. The analysis is based on secondary data sourced from the Reserve Bank of India, Census and Economic and Political Weekly Research Foundation. It captures the data for a period of 20 years (1991-2011). An initial review indicates internal migration in the form of intra-state migration is very high compare to inter-state migration. The analysis of convergence/divergence suggests dispersion among states has increased in the concerned period. Similarly, absolute β-convergence indicate that rich states are growing faster than poor states. However, when conditional convergence is tested by various variables, conditional convergence among states is evident. However, migration and literacy rate as important indicator not producing the expected results, as migration which is expected to be negatively correlated to economic growth, is positive. The coefficient of the initial level of per capita income is found to be statistically significant, implying conditional convergence across Indian states during 1991-2011. Further, policy makers need to consider migration, literacy rate, investment, and population growth as means to reduce economic disparities among states. Moreover, migration should be encouraged for economic growth and broader convergence.

Trade and Convergence: Empirical Evidence from BRICS Countries

The present article attempts to analyse trade and per capita income convergence for the BRICS countries. The effects of economic bloc formation on their trade and income distribution or convergence (divergence) among the countries have been analysed. To observe the effect of trade on convergence rates, intra-trade group, single difference approach and panel unit roots tests have been used. The convergence measure is estimated between BRICS countries and their major trading partners from post-trade liberalization period. The study revealed that BRICS countries converged over the study period. However, the evidence on post-BRICS economic bloc formation shows an insignificant relationship. The results of the analysis of post-trade liberalization of BRICS countries vary among the BRICS countries. Further, panel unit roots test results confirm that conditional convergence is taking place within BRICS bloc and all export-based groups except for Indian economy and import-based groups. Besides, absolute convergence has been confirmed for all the groups. Thus, the study suggests the need of BRICS countries to actively engage in trade and investment activities.

Dampak Desentralisasi Fiskal terhadap Konvergensi Pendapatan Perkapita antar Kabupaten/Kota di Indonesia

Dengan menggunakan data panel 505 kabupaten/kota di Indonesia selama periode pelaksanaan desentralisasi dari tahun 2001-2017, penelitian ini bertujuan untuk menguji tentang indikasi konvergensi perekonomian antar daerah di Indonesia dan untuk mengetahui pengaruh kebijakan desentralisasi fiskal terhadap konvergensi pendapatan perkapita antar daerah di Indonesia. Indikator desentralisasi fiskal menggunakan indikator pendapatan dan indikator belanja daerah. Indikator pendapatan daerah terdiri dari pendapatatan asli daerah, dana bagi hasil, dan dana transfer. Indikator belanja daerah fokus pada belanja sektor pendidikan, sektor kesehatan, dan sektor infrastruktur. Menggunakan analisa konvergensi statis, penelitian ini menemukan bukti bahwa terjadi konvergensi pendapatan perkapita antar kabupaten/kota di Indonesia. Analisa konvergensi dinamis dengan model absolute convergence dan conditional convergence. Hasil estimasi model absolute convergence menunjukkan terjadinya konvergensi pendapatan perkapita antar kabupaten/kota di Indonesia dengan tingkat konvergensi sebesar 7 persen. Sedangkan hasil estimasi model conditional convergence menghasilkan tingkat konvergensi sebesar 19 persen ketika tenaga kerja, investasi, angka partisipasi pendidikan, dan indikator desentralisasi fiskal disertakan dalam model.

Predicting the Water Rebound Effect in China under the Shared Socioeconomic Pathways

The rebound effect exists widely in the fields of energy, irrigation, and other resource utilizations. Previous studies have predicted the evolution of different resource utilizations under the shared socioeconomic pathways (SSPs), but it is still unclear whether total water use has a rebound effect. This study uses the SSPs as the basic prediction framework and evaluates the water resources and economic status of the provinces in China using the hydro-economic (HE) classification method. Then, combined with the SSPs scenario setting parameters, the conditional convergence model and the method recommended by the Food and Agriculture Organization of the United Nations (FAO) are used to simulate the changes in water use efficiency of the different provinces in China under different scenarios. Based on the future GDP forecast data of China’s provinces, combined with the forecast of water use efficiency changes, the total water use changes in China’s 31 provinces under different pathways from 2016 to 2030 are calculated. Among them, the future GDP data is predicted based on the Cobb–Douglas production function and SSPs scenario settings. Using a comprehensive evaluation of the evolution of the efficiency and the total amount, this study reveals whether there is a rebound effect. The results showed that with the continuous growth in the water use efficiency, the total water use had a “U” type trend, which indicated that there was a rebound effect in the total water use of China under the different SSPs. Based on this information, this study proposes some suggestions for irrigation water-saving technologies and policies.