چکیده:
this paper is to study the convergence of per capita income.
Convergence clubs hypothesis is one of the forms of convergence hypotheses, implying that countries with the same initial level of economic development, technology, and government policies, tend to be similar in per capita income and thus have a tendency to cluster around a small number of poles. In order to test the hypothesis of the formation of the convergence clubs among 15 Middle East and North African (MENA) countries for the period of 1990–2015, we used a non-parametric analysis (distribution dynamics approach). The distribution dynamics of real per capita GDP showed that “twin peaks” were being formed in the MENA region.
خلاصه ماشینی:
Testing the Convergence Clubs Hypothesis among MENA Countries Arash Hadizadeh*1 Received: March 7, 2018 Accepted: April 18, 2018 his paper is to study the convergence of per capita income.
Convergence clubs hypothesis is one of the forms of convergencehypotheses, implying that countries with the same initial level of economic development, technology, and government policies, tend to be similar in per capita income and thus have a tendency to clusteraround a small number of poles.
In order to test the hypothesis of theformation of the convergence clubs among 15 Middle East and North African (MENA) countries for the period of 1990–2015, we used a non- parametric analysis (distribution dynamics approach).
An alternative hypothesis by Durlauf and Johnson (1995) showed the possibility of multiple-equilibriums model in cross-country growth behavior; therefore, the economies will converge as locally rather than globally.
On the other words, countries with similar initial conditions move toward common steady states in the long-run, and thus the difference among economies in terms of per capita income will not be disappeared, which can lead to the convergence clubs’ formation.
1 Data In this paper, we collected the datasets for RGDPPC of 15 MENA countries, including Algeria, Bahrain, Djibouti, Egypt, Iran, Israel, Jordan, Lebanon, Malta, Morocco, Oman, Saudi Arabia, Tunisia, United Arab Emirates, and Yemen from the World Bank’s World Development Indicators (WDI) dataset (2018) online.
3. 2 Methodology As mentioned in Section 1, we tested the convergence clubs hypothesis among MENA countries employing distribution dynamics approach by Quah (1996).