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Empirics for Economic Growth and Convergence in Asian Economies: A Panel Data Approach

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  • Ji Uk Kim

    (Department of Economics, Chung-Ang University)

Abstract

This paper tests the null hypothesis of endogenous growth theories which predict cross country differences in trend growth rates against the alternative hypothesis of exogenous growth theories which predict the same trend growth rates. We use the modified test procedure with heterogeneous intercepts allowing different growth rates across economies. We apply the test to 17 Asian countries and NIEs with panel data. Our results are consistent with neoclassical growth theories which predict the convergence of the 17 Asian countries and NIEs, but which imply that trend growth rates are different across economies. These results support the conditional convergence of the exogenous growth model against the endogenous growth model.

Suggested Citation

  • Ji Uk Kim, 2001. "Empirics for Economic Growth and Convergence in Asian Economies: A Panel Data Approach," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 26(2), pages 49-59, December.
    • Handle: RePEc:jed:journl:v:26:y:2001:i:2:p:49-59
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    References listed on IDEAS

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    Cited by:

    1. Mohsen Bahmani-Oskooee & Gour G. Goswami, 2003. "Smuggling As Another Cause Of Failure Of The Ppp," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 28(2), pages 23-38, December.
    2. Matsuki, Takashi, 2019. "Per capita output convergence across Asian countries: Evidence from covariate unit root test with an endogenous structural break," Economic Modelling, Elsevier, vol. 82(C), pages 99-118.
    3. Matsuki, Takashi & Usami, Ryoichi, 2008. "Long-run growth patterns within Asian NIEs: Empirical analysis based on the panel unit root test, allowing the heterogeneity of time trend and endogenous multiple structural breaks," MPRA Paper 11541, University Library of Munich, Germany.
    4. Evans, Paul & Kim, Ji Uk, 2005. "Estimating convergence for Asian economies using dynamic random variable models," Economics Letters, Elsevier, vol. 86(2), pages 159-166, February.

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