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Convergence of Per Capita GDP Across SAARC Countries

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Abstract

In this paper we have examined the issue of convergence of per capita GDP across 7 South Asian countries during 1960-2000 using World Bank data. Empirical results failed to find evidence of s convergence, b convergence and conditional b (bc) convergence in South Asia. The reasons for non-convergence of per capita GDP can be explained by low and falling volume of intra-country trade, weak governance and low level of growth achieved by the individual countries. Further, non-convergence can be attributed to explanations provided by endogenous growth models.

Suggested Citation

  • Chowdhury, Khorshed, 2004. "Convergence of Per Capita GDP Across SAARC Countries," Economics Working Papers wp04-07, School of Economics, University of Wollongong, NSW, Australia.
    • Handle: RePEc:uow:depec1:wp04-07
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    Cited by:

    1. Naved Ahmad, 2008. "Corrupt clubs and the convergence hypothesis," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(1), pages 21-28.
    2. Shabari Paul Dey & Debasis Neogi, 2015. "Testing Sigma and Unconditional Beta Convergence of GDP for SAARC Countries: Can Inclusion of China further Consolidate the Convergence?," Global Business Review, International Management Institute, vol. 16(5), pages 845-855, October.
    3. Uzma Zia, 2019. "An Evidence of Diverging SAARC Economies," PIDE-Working Papers 2019:170, Pakistan Institute of Development Economics.
    4. Daly, Vince & Khan, Ghulam Yahya, 2016. "Growth Convergence and Convergence Clubs in SAARC," Economics Discussion Papers 2016-1, School of Economics, Kingston University London.
    5. Jahan, Sumbul, 2013. "Does Convergence Exist?," MPRA Paper 48836, University Library of Munich, Germany.
    6. Suresh Moktan, 2008. "Evaluating the Intra–regional Exports and Trade Creation and Trade Diversion Effects of Trade Agreements in SAARC Countries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 9(2), pages 233-260, September.
    7. Swapan K. Bhattacharya & Gouranga G. Das, 2014. "Can South–South Trade Agreements Reduce Development Deficits?," Journal of South Asian Development, , vol. 9(3), pages 253-285, December.
    8. Naved Ahmad, 2008. "Corrupt clubs and the convergence hypothesis," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 11(1), pages 21-28.
    9. Muhammad Safdar & Ahmad Nawaz, 2020. "Testing The Convergence Hypothesis In Solow Growth Model: A Statistical Evidence From Saarc Economies," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(2), pages 60-73, June.

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    More about this item

    Keywords

    Per Capita GDP; Convergence;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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