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Does Total Factor Productivity Converge Among Asean Countries?

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  • Badri Narayan Rath

    (Indian Institute of Technology Hyderabad)

Abstract

This paper examines the productivity convergence of the five original Association of Southeast Asian Nations (ASEAN) countries, namely Indonesia, Malaysia, Philippines, Singapore, and Thailand (ASEAN-5), using annual data spanning the period 1968to 2014. Results from two-break Lagrange multiplier and residual augmented least squares Lagrange multiplier unit root tests reveal strong evidence of productivity convergence in case of ASEAN-5. Further, the results based on Phillips–Sul panel club convergence also reveal productivity convergence. To check the robustness of our finding, we use an alternative measure of total factor productivity and still find evidence of convergence. We infer that such productivity improvements may help ASEAN countries to achieve a higher pace of economic growth.

Suggested Citation

  • Badri Narayan Rath, 2019. "Does Total Factor Productivity Converge Among Asean Countries?," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 21(12th BMEB), pages 477-494, January.
    • Handle: RePEc:idn:journl:v:1:y:2019:i:sp3:p:477-494
    DOI: https://doi.org/10.21098/bemp.v0i0.962
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    More about this item

    Keywords

    Total Factor Productivity; Convergence; Lagrange Multiplier; ASEAN;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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