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.

Spatial convergence of mortality in Poland

Aim The aim is to observe whether there is a territorial similarity of changes in mortality due to selected causes in Poland in the years 2002–2017. Convergence models were used to verify the hypothesis that, since Poland's accession to the EU, the country has seen a spatial convergence of mortality due to major causes of death. Results and conclusion The country's provinces have been homogenising in terms of death intensity levels evening out for the majority of examined groups of causes. This is indicated by the confirmed absolute beta-convergence for most variables, including the two major causes of death: I00–I99 and C00–D48. However, a confirmation of beta-convergence does not always apply to both a broader and a narrower group of causes. In turn, sigma-divergence of mortality due to most of the examined causes in Poland's provinces indicates increasing variation in the years 2002–2017, which means that the provinces were not becoming similar. Such findings indicate that the formulated hypothesis has not been confirmed.

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

CONVERGENCE OF FINANCIAL DEVELOPMENT IN ASEAN BASED ON PRIVATE CREDIT AND LIQUID LIABILITIES INDICATORS

The financial development gap for ASEAN countries is critical to analyze since the widening financial development gap will lead to underdeveloped financial sector performance. The concept considered appropriate to measure the gap of financial development is the sigma, and beta convergence approaches. Therefore, this study aims to measure, test, and analyze the convergence of sigma and beta financial development in ASEAN. The method used was the Generalized Moment Method (GMM) dynamic panel with 2010-2017. Results of the study showed that there is a convergence of sigma and beta financial development in ASEAN countries. The limitation of this study is that it only uses two indicators of financial development. The governments of each ASEAN country can improve the financial sector by reforming the financial sector to mitigate, improve, and encourage the development of the financial sector. Keywords: ASEAN, convergence, financial development, GMM

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.

NEOCLASSICAL NATURE AND BACKGROUND OF BETA CONVERGENCE BETEWEEN COUNTRIES/REGIONS

The methodological basis of beta-convergence concept (which is based on the neoclassical model of growth) is studied. According to the theory of convergence, there is a set of countries (regions, provinces) that are members of the so-called "convergence clubs" i.e. in these countries (or regions) there is the process of convergence of their social and economic development towards more developed countries (regions). Numerous empirical studies of scientists around the world on this topic are currently a powerful basis for the development of appropriate regional economic policy by governments. The period since the 1980s is characterized by increased interest of researchers in the convergence processes of regions and countries, as such processes have important positive consequences for the welfare of the population, economic growth and are the basis for effective regional policy. Today, a large number of scientists from around the world annually publish dozens of research results based on the use of convergence, which is based on a non-classical model of growth. However, these studies should take into account the nature of non-classical growth models, their shortcomings and make appropriate modifications to the classical model. Given the above in this context it is common to analyze the features of the neoclassical model, the main of which is the non-competitive nature of the ideas underlying the technology. An analysis of the features of the neoclassical model of growth, the main of which is the non-competitive nature of the ideas underlying the technology. It was found that the level of growth of the economy, which is below the steady state, is high and gradually decreases over time. The author proves the existence of certain conditions for the usage of beta-convergence in empirical studies. First, in the models, the growth rate of per capita income and its corresponding initial value are usually inversely dependent, and therefore the testing of the hypothesis of convergence of countries/regions should be based on the assessment of such dependence. Second, the Cobb-Douglas production function must have the property of a permanent effect of scale, which requires its empirical study.

Enterprise research and development activity in Poland in com-parison to Eurozone countries

During the years 2000-2018, the number of enterprises conducting research and development activity in Poland was increasing systematically, thus the expenditures on research and development were increasing as well. The impact of R&D activity on the level of innovation of both enterprises and entire economies is related to objective and subjective structure of these expenditures which means that is not connected only with the value of the expenditures for its financing. The purpose of this paper is to present the level of expenditures on R&D in the business enterprise sector in Poland, in comparison to Eurozone countries and to analyze the convergence of value of these expenditures in Poland. The authors of the article used description and analysis of the statistical data obtained from the EUROSTAT and the GUS (General Statistical Office in Poland) statistics and estimation of econometric models and testing the occurrence of sigma and beta convergence. Based on the results we state that the key issue is to further activate Polish enterprises within the sphere of research and development, because Poland, in comparison with Eurozone countries, ranks within the group of countries with low expenditures on research and development and with structures characteristic of less prosperous economies. The study allowed determination of occurrence of sigma and beta convergence in Poland, in comparison with the Eurozone countries.

Aceh Province Economic Convergence Determination

This study analyzes the occurrence of economic convergence between districts / cities in Aceh Province and looks at the factors that can accelerate the economic convergence. This study uses panel data from 23 districts / cities in Aceh Province for the period 2008-2018. The results found from this study are that there has been economic convergence, both sigma convergence and beta convergence, in Aceh Province. Factors that significantly influence economic convergence in Aceh Province are the average length of schooling, life expectancy, and the special autonomy fund. The time needed to get to half the convergence process is 4.10 years with the resulting conditional beta convergence rate of 16.89%.