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Detecting the Convergence Clubs and Catch−Up in Growth

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  • Poh Choo Song
  • Siok Kun Sek
  • Wai Mun Har

Abstract

We conduct empirical panel data analysis to detect the catching- up effect in growth and the possibility to form different convergence clubs in selected Europe and Asian economies. In particular, we seek to investigate if the selected countries are able to catch- up to the growth level of developed economy of the United Kingdom (U.K.). The control variables used to test for conditional convergence include inflation, trade, net inflow of foreign direct investment, total population and government consumption expenditure. Our results reveal that all economies except Turkey and India are able to catch- up with U.K. economy. The economies in both regions of Europe and Asia are able to form their convergence clubs.

Suggested Citation

  • Poh Choo Song & Siok Kun Sek & Wai Mun Har, 2013. "Detecting the Convergence Clubs and Catch−Up in Growth," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(1), pages 1-15.
    • Handle: RePEc:asi:aeafrj:v:3:y:2013:i:1:p:1-15:id:964
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