Convergence Hypothesis: The Case of Asian Tigers
Convergence Hypothesis
DOI:
https://doi.org/10.62844/jerf.12Keywords:
Convergence Hypothesis, Gross Domestic Product, Asian Tigers, Four Little Asian Dragons, Panel Unit Root TestAbstract
The convergence hypothesis, one of the implications of the Solow model, predicts that economies with different levels of development will converge over time. Two types of convergence concepts are used in the literature to test the convergence hypothesis. These are sigma (σ) convergence and beta (β) convergence. This study, which uses real GDP per capita data, examines whether there is sigma convergence. The Asian Tigers (also known as the Four Little Asian Dragons) is a term given to the economies of four countries: Hong Kong, South Korea, Singapore and Taiwan. In this study, the convergence of the Asian Tigers, which have been undergoing a rapid industrialization process since 1960 and exhibited high growth performance, with the net GDP per capita data for the period 1990-2020 is examined with the first and second generation panel unit root test. According to the findings, the Asian Tigers country group does not show a convergence process in the selected period.
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