International Conference on Eurasian Economies
1-3 July 2014 – Skopje, MACEDONIA
Paper detail
Paper ID : 970
Status : Paper published
Language : English
Topic : Growth and Development
Presenter: Asst. Prof. Dr. Aslı Cansın Doker
Session : 2A Growth & Development
Beta Convergence Analysis on Transition Economies: 1991-2011
Beta Convergence Analysis on Transition Economies: 1991-2011
- Asst. Prof. Dr. Ş. Mustafa Ersungur (Atatürk University, Türkiye)
- Asst. Prof. Dr. Aslı Cansın Doker (Erzincan Binali Yildirim University, Türkiye)
- Asst. Prof. Dr. Adem Türkmen (Erzurum Technical University, Türkiye)
Abstract
Owing to Solow’s neo-classical the convergence hypothesis, which explains underdeveloped and developing countries grew faster than any of these developed countries have acknowledged that captures the level of per capita income, was added to the economic growth and development literature. Despite, theoretically there are two different approaches in convergence analysis; real and conditional, it cannot be said generalizing empirical results for both. Accordingly, 29 transition economies which tried to cross from the planned economic system into liberal economic system, is subjected to this study. Convergence have been analysed on transition economies between 1991 and 2011 using the growth rate of per capita income as variables by cross-sectional data analysis. In this study, additionally to real convergence, obtaining from the KOF index of economics, political and social integration and openness data were included the model as dummy variables for examining conditional convergence. Depending on empirical results on real and conditional convergence analysis, the convergence hypothesis is accepted. It is identified that Cambodia, Vietnam and China especially have caught up with faster growth comparing with other transition economies; however, those countries have shown weaker convergence than others. On the other hand, Kirghizstan and Tajikistan, which are known as mostly having the effects of transition recessions, have negative growth rates, and those countries have been diverging from other countries’ growth performance. From findings obtained within conditional convergence, it is examined while political liberalisation and openness variables have been accepted significantly; the economic and social liberalization variables have no significant effect on convergence.
JEL codes: C31, F41, O11
Ersungur, Ş. Mustafa, Doker, Aslı Cansın, Türkmen, Adem (2014). "Beta Convergence Analysis on Transition Economies: 1991-2011" in Proceedings of International Conference of Eurasian Economies 2014, pp.68-74, Skopje, MACEDONIA.
DOI: https://doi.org/10.36880/C05.00970
Session 2A: Growth & Development
