Regional Integration in the West African Economic and Monetary Union (WAEMU): Complementarity or Competition?

This paper analyzes and characterizes the nature of the interactions between countries of the West African Economic and Monetary Union (WAEMU) over the period 1995–2015. The analysis uses sigma-convergence on the one hand and the Dendrinos-Sonis spatial competition model estimated by the SUR method on the other hand. The results show a lack of convergence of living standards and support the idea of income polarization in space; these results also support the idea of a very poorly integrated region with relatively competitive interrelationships. The paper suggests the acceleration of regional integration in the WAEMU region combined with the implementation of inclusive integration policies that promote each member’s comparative advantage.

Analysis of currency integration indicators in the Eurasian Economic Union

For the world economy, the integration process is one of the most widespread and global. The Eurasian Economic Union is a typical example of bringing countries together to achieve shared goals and to face diverse challenges successfully by implementing coordinated policies and harmonizing the regulatory framework. The formation of a monetary union will be the next stage of integration. The EAEU member States need to achieve a certain level of economic convergence for that purpose. Thus, the main aim of this research article is to analyze some of the economic indicators of the EAEU in order to identify common problems, the solution of which will be necessary for the successful formation and functioning of the monetary union. The authors have studied such indicators as GDP volumes and inflation levels, as well as the dynamics of changes in exchange rates and the level of mutual direct investment in terms of sigma convergence. The authors have also used methods of graphical representation of the scientific results. The reports of the Eurasian Economic Commission and the Central Banks of the EAEU Member States were used as the main sources of statistical data.

The Convergence of Macroeconomic Variables within the East Africa Community

This study seeks to establish whether the East African Countries are realizing convergence in their macroeconomic policies as efforts are geared towards the establishment of an economic union and subsequently a monetary union in a bid to foster economic growth in the region. Five EACs were included in the analysis using panel data for the period 2008-2018. The methodology employed in the analysis involved; sigma convergence, beta convergence using fixed-effect model, and finally stochastic convergence was tested. The findings show that there is no evidence of macroeconomic convergence and the less developed countries are neither catching up with the relatively developed countries. The macroeconomic variables are also not showing a tendency to be moving the same direction as time goes by. Therefore, for the EACs to realize a common union, either economic or monetary, they need to formulate policies that will ensure that the member states adhere to the desired macroeconomic policies that would lead the region to convergence.

Do house price-earnings ratios in England and Wales follow a power law? An application of Lavalette’s law to district data

This paper considers Lavalette’s function and its applicability to district house price-earnings ratios. Drawing on work in the urban scaling literature and Zipf’s law, in conjunction with finance theories of pricing and affordability, the paper considers how stable the distribution of ratios is over time, how robust the ranking order of ratios is in the face of variations in affordability over 2004–2019, and proffers an explanation for the shape and movement of the distribution. It draws on issues found in the economic growth literature where sigma-convergence is applied to spatial variables, and a narrowing of the distribution is said to indicate convergence. It proposes that, when plotted over time, the Lavalette exponent and Spearman’s correlation coefficient point to divergence and rank-order stability.

The Short-Term Effects of European Integration on Mortality Convergence: A Case Study of European Union’s 2004 Enlargement

Although European integration can be expected to result in mortality convergence (reduced mortality differences), a life expectancy divide persists in the European Union (EU) between the old Member States (OMS) in the west and the new Member States (NMS) in the east. Studies investigating the impact of European integration on mortality convergence are rare and did not consider regional differences. We examine the short-term effects of the 2004 enlargement on mortality convergence at the supranational, national, and subnational levels. Using sex-specific life expectancies for 23 Member States (1990–2017) and the NUTS 2 regions in Czechia, Hungary, and Poland for 1992–2016, we examined the trend in sigma and beta mortality convergence measures at the country and regional levels using joinpoint regression. We found no compelling evidence that EU accession influenced the process of mortality convergence between OMS and NMS, or within the three NMS, over the short term. While there was overall beta and sigma convergence at the national level during 1990–2017, no regional convergence showed, and the trends in convergence did not significantly change at the time of EU accession or soon after (2004–2007). The accession in 2004 did not visibly impact the overall process of mortality convergence over the short term, likely because of the greater influence of country and region-specific policies and characteristics. The interaction of Member State and regional contexts with the mechanisms of European integration requires further study. Future enlargement procedures should emphasise tailored support to ensure more equitable gains from European integration.

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.

Spatial-temporal variations and trends of Internet users: assessment from global perspective

This study investigated the spatial-temporal variation and trend of the Internet user percentage (IUP) at the country level in the world from 1996 to 2017. Several methods were applied including kernel density estimation, global autocorrelations, sigma-convergence detection, and hierarchical clustering. The results demonstrated that the spatial distribution of IUP at the country level showed significant positive autocorrelations indicating clustered spatial patterns rather than dispersed or random distributions. In addition, the temporal variation of the distribution disparity of IUP showed a decreasing trend at the country level during the study period. Further, sigma convergence of IUP during this period was detected according to the coefficient of variation. Last, the similarity of the IUP variation at the country level presented the spatial clustering feature with spatially contiguous countries in the world. In sum, the finding in this study indicated that Internet penetration may show the promotion of the balanced development trend over time in the world and the spatial characteristics of Internet development should be considered in the future policy globally.

Beta-convergence of crop yield across countries: A Modern Panel Data Analysis

This study examines the state of beta-convergence in three major crop yields l in the world namely rice, wheat and maize in terms of output production and cereal grain consumption during the period 1961 to 2016 using modern panel data approach concerning beta convergence. This has been done by applying the advanced panel data methodology, namely, panel unit root tests on demeaned series and panel regression apart from conventional indicators such as standard deviation and coefficient of variation. The conventional sigma convergence indicators namely, standard deviation and coefficient of variation show convergence for wheat for the period of 1986 to 2016 showing a downward trend and thus indicating sigma-convergence, But the results of panel unit root and panel regression establish beta convergence for all the crop yield. This result also shows that economies converge to different steady states.JEL classification: Q1, Q18, C23, O47

Convergencia y desarrollo en la Argentina urbana (2003–2016)

*Full article is in SpanishEnglish Abstract: This article analyses the recent evolution of territorial disparities in Argentina, measured by a Multidimensional Poverty Index, by carrying out a formal convergence analysis between agglomerates. In particular, the existence of absolute β-convergence and σ-convergence is tested. The information comes from the microdata of the Permanent Household Survey. The results suggest that, although an end-to-end analysis of the period shows a decrease in poverty accompanied by a reduction in territorial disparities between the main urban agglomerates in Argentina, when disaggregating by subperiods, it is evident that in periods of economic growth (essentially from 2003 to 2009), territorial disparities increased. Conversely, in periods of stagnation, these disparities decrease.Spanish Abstract: Este articulo analiza la evolución reciente de las disparidades territoriales en Argentina, medida por un Índice de Pobreza Multidimensional, mediante un análisis formal de convergencia entre aglomerados. En particular, se testea la existencia de convergencia-β absoluta y convergencia-σ. La información proviene de los microdatos de la Encuesta Permanente de Hogares. Los resultados sugieren que, si bien en un análisis punta-a-punta del período se observa un a reducción de la pobreza acompañada de una reducción de las disparidades territoriales entre los principales aglomerados urbanos de Argentina, al desagregar por subperíodos, se evidencia que en los períodos de crecimiento económico (esencialmente del 2003 al 2009) se incrementaron las disparidades territoriales. En tanto que en los periodos de estancamiento, estas disparidades se redujeron.French Abstract: Ce travail analyse l’évolution récente des disparités territoriales en Argentine, mesurée à partir d’un Indice multidimensionnel de la pauvreté, sur la base d’une étude de la convergence entre les agglomérations urbaines. Il teste en particulier l’existence de la beta convergence absolue et de la sigma convergence. Les informations proviennent de microdonnées de l’Enquête permanente des ménages. Bien qu’une analyse ponctuelle de la période montre une réduction générale de la pauvreté accompagnée d’une réduction des disparités territoriales entre les principales agglomérations urbaines d’Argentine, la désagrégation par sous-périodes permet d’observer que pendant les périodes de croissance économique (essentiellement de 2003 à 2009), les disparités territoriales se sont accrues alors qu’en période de stagnation elles se sont réduites.

Anti-corruption disclosure as a necessary evil: impact on profitability and stability of extractive firms in Africa

Purpose This study aims to examine the effect of anti-corruption disclosure on the profitability and financial stability of extractive firms in Africa. It also tests the convergence of profitability and financial stability. Design/methodology/approach The study uses an unbalanced panel data of 27 firms operating in five African countries covering the period 2006–2018. Anti-corruption assessment is done in line with GRI 205: Anti-Corruption. Profitability is measured using the return on asset and return on equity, whereas the z-score measures financial stability. The study uses the panel-corrected error regression technique for estimation. Findings There is evidence that corruption disclosure reduces the financial stability of firms. Disclosures on corruption analysis and corruption training are the main factors driving the reduction in financial stability. The effect on profitability is not significant except in the case of disclosure on corruption response, which also reduces profitability. There is strong statistical evidence to suggest that profitability and financial stability of extractive firms converge. This suggests that less-performing firms catch up with high performers. Research limitations/implications The study has relevant implications for practitioners, policymakers and the academic community. The study uses data that is skewed towards large extractive firms. Originality/value This study is premier in exploring the effect of anti-corruption disclosure on performance metrics among extractive firms in Africa. It is also unique in providing a test of both beta and sigma convergence of performance among the firms.