Sustainability of Economic Growth and Convergence in Regions of Different Developmental Stages

This study aims to contribute to the overall discussion on sustainability of growth and convergence in a variety of regions, focusing on not only economic but also environmental sustainability aspects and consequences of convergence. Results show that the direction and rate of economic convergence among countries of different regions markedly depends on the stage of their development and corresponds well to the primary regularities of logistic growth law. In developing regions, faster growth in richer countries leads to divergence among countries of the region. Absolute economic convergence is only possible in economically developed regions, which have already passed the stage of maximal growth rate and can be characterized by the deceleration of economic growth gradually approaching the steady state (zero‐growth) stage. Economic growth and convergence lead to both positive and negative environmental outcomes. The first signs of absolute decoupling have been noticed over the last decade in some developed countries, but only a relative decoupling of environmental impact from economic growth is characteristic of developing regions and countries. The level of decoupling is not sufficient, and environmental impact in developing countries and in the largest emerging economies in particular is approaching the high level of developed countries much faster than the economy. Hence, different development stages require different approaches and policies for both economic development and environmental sustainability. Copyright © 2016 John Wiley & Sons, Ltd and ERP Environment