Analysing convergence in Europe using the non-linear single factor model

We investigate convergence in European price level, unit labour cost, income and productivity data over the period of 1960–2006 using the non-linear time-varying coefficients factor model proposed by Philips and Sul (2007 Econometrica 75:1771–1855). This approach is extremely flexible in order to model a large number of transition paths to convergence. We find regional clusters in consumer price level data. GDP deflator data and unit labor cost data are far less clustered than CPI data. Income per capita data indicate the existence of three convergence clubs without strong regional linkages; Italy and Germany are not converging to any of those clubs. Total factor productivity data indicate the existence of a small club including fast-growing countries and a club consisting of all other countries.     

Regional convergence clubs in Europe: Identification and conditioning factors

The aim of this paper is to empirically identify convergence clubs in per capita incomes of European regions and to investigate whether initial conditions − as suggested by the club convergence hypothesis − are responsible for club formation. To tackle this issue, we propose a two-step procedure in which we first endogenously identify groups of regions that converge to the same steady state level, and in a second step we investigate the role of starting conditions and structural characteristics for a region's club membership. Our sample comprises 206 European NUTS2 regions between 1990 and 2002. The results strongly support the existence of convergence clubs, indicating that European regions form six separate groups converging to their own steady state paths. Moreover, estimates from an ordered logit model reveal that the level of initial conditions such as human capital and per capita income plays a crucial role in determining the formation of convergence clubs among European regions.     

Club convergence analysis of regional ecological efficiency in China

This paper adopts a network data envelopment analysis (DEA) model combined with a window analysis approach to evaluate the ecological efficiency (eco‐efficiency) of 30 regions in China over 2000–2015. We also investigate the existence of eco‐efficiency convergence clubs among these regions and analyse the important factors that drive eco‐efficiency club formation. Our results reveal that, overall, Chinese regional eco‐efficiency deteriorated from 2000 to 2015. We find that there is a significant regional disparity in eco‐efficiency. Our convergence analysis indicates that Chinese regions converge into three eco‐efficiency clubs, suggesting that common economic and environment policies might have a limited impact on promoting regional eco‐efficiency and regionally‐tailored policies need to be designed. Finally, we find that forest coverage, R&D expenditure and pollution punishment are important determinants of convergence club membership.     

Inequality and club formation

We study the relationship between social segmentation and income inequality by means of the economic theory of clubs with private provision of the club good. After having characterized the core partition of society in clubs and investigating its characteristics, we show how the clubs’ sizes depend on income distribution and compare segmentation profiles arising in societies characterized by different inequality patterns.     

Income convergence clubs for Brazilian Municipalities: a non-parametric analysis

This article analyses the evolution of relative per capita income distribution of Brazilian municipalities over the period 1970–1996. Analyses are based on non-parametric methodologies and do not assume probability distributions or functional forms for the data. Two convergence tests have been carried out – a test for sigma convergence based on the bootstrap principle and a beta convergence test using smoothing splines for the growth regressions. The results obtained demonstrate the need to model the dynamics of income for Brazilian municipalities as a process of convergence clubs, using the methodology of transition matrices and stochastic kernels. The results show the formation of two convergence clubs, a low income club formed by the municipalities of the North and Northeast regions, and another high income club formed by the municipalities of the Center-West, Southeast and South regions. The formation of convergence clubs is confirmed by a bootstrap test for multimodality.     

中国区域经济收敛了吗?——基于时间序列的再检验

基于1952-2009年间的GDP数据,采用最近发展起来的随机收敛和β收敛检验方法,分析了中国区域经济差距的演进趋势。如果考虑结构突变,在断点之后的时期内有近半数省份呈现随机收敛和β收敛证据,并且当断点内生时β收敛的证据更为充分。东部地区和中部地区多数省份具有相同的增长路径,形成各自的"俱乐部"。幸运的是,东部省份近年来高于全国平均收入水平的程度有所缓解;而中部不少省份也逐渐缩小了与全国平均水平的差距;西部地区则有半数省份具有相同的增长路径,部分省份近年来与全国平均收入水平的差距也有逐渐缩小的趋势,表明2000年以来的区域协调政策在一定程度上实现了预期目标。     

Stochastic Regional Convergence in China: The Role of Regional Clusters in a Nonlinear Perspective (1952–2007)

This paper investigates the notion of stochastic convergence behaviour across the Chinese provinces. Unlike previous works, the present paper takes into account the economic geography by examining the regional clusters and the significant transformation of the Chinese economy through the introduction of structural breaks and nonlinearities in the model. Results indicate that the regional clusters are relevant to the convergence behaviour across China, when both the administrative division and the regional clusters are considered. However, the number of provinces that are converging is higher in the latter case. When nonlinearities were considered across the regional clusters, we found that 18 provinces have already converged with their cluster, 3 provinces are catching up and 10 regions show divergence. These findings are useful for the design and development of national and regional economic policies in the Chinese economy.     

Nonstationarity and Stochastic Stability of Relative Income Clubs

The recent literature on “convergence” of cross‐country per capita incomes has been dominated by the two hypotheses of “global convergence” and “club‐convergence,” pertaining to limits of estimated income distribution dynamics. Utilizing a new measure of “stochastic stability,” we establish two stylized facts regarding short‐ and medium‐term distribution dynamics. The first is non‐stationarity of transition dynamics, in the sense of changing transition kernels, and the second is emergence, disappearance, and re‐emergence of a “stochastically stable” middle income group. This middle income group emerges as the gap between rich and poor clubs gets larger, and it changes the dynamics of transition to and from the rich and poor clubs, eventually narrowing the gap between the poor and rich as the middle club vanishes. Analyzing the stochastic stability of middle‐income groups is thus a first step toward understanding higher‐order dynamics of narrowing or widening of the gap between rich and poor countries.     

绿色创新环境与工业转型升级耦合区域差异与收敛性分析

基于创新环境-转型升级耦合视角,采用TOPSIS熵权法、耦合协调度模型和非线性时变因子模型,分析2007-2017年中国内地30个省市区绿色创新环境与工业转型升级耦合关系的演进特征。结果发现：①2007年以来中国绿色创新环境与工业转型升级耦合度整体虽有提高之势,但协调度仍然较低,且耦合协调等级没有发生明显跃迁,并呈现由东部向西部递减态势;②区域间差异是系统耦合协调度差距的主要来源,在地区差异多极化发展趋势下其波动存在4个潜在收敛俱乐部,呈现出地理“区块链”收敛趋势;③采用QAP方法对地区耦合度差异影响因素进行检验发现,地区经济发展差异、信息化水平差异、教育水平差异和城镇化水平差异是主要原因,而地理位置邻近、俱乐部收敛发展趋势有利于缩小地区耦合发展差异。     

Urban–rural gap and poverty traps in China: A prefecture level analysis

Urban–rural gap and regional inequality are long-standing problems in China and result in considerable number of studies. This article examines the dynamic behaviours of incomes for both urban and rural areas with a prefectural data set. The analysis is conducted by using a distribution dynamics approach, which have advantages in examination on persistence, polarization and convergence clubs. The results show that persistence and immobility are the dominant characteristics in the income distribution dynamics. The prefectural urban and rural areas converge into their own steady states differentiated in income levels. This pattern of urban–rural gap also exists in three regional groups, namely the eastern, central and western regions. Examination on the dynamics of the poorest areas shows that geographical poverty traps exist in both urban and rural prefectural areas. Our results indicate that more policy interventions are required to narrow down the urban–rural gap and to eliminate the poverty traps in China.     

The Convergence Analysis of Chinese Regional Inequality

Based on the convergence theory, this paper discusses Chinese regional economic inequality among 30 provinces, which are divided into three groups, that is, Traditional Advanced Regions group, New Advanced Regions group and Less Developed Regions group. It is verified that regional income growth does not present absolute beta convergence or sigma convergence, but presents conditional beta convergence from 1978 to 2003. Those economic policies of reform and opening-up to the outside world are provided with regionally heterogeneous characteristics and are powerful enough to influence regional performance in growth.     

Convergence,divergence, or multiple steady states? New evidence on the institutional development within the European Union

Convergence in institutions and in per capita income across the European Union (EU) Member States are key goals of the European integrations process. Especially in the course of the various EU enlargement waves starting in 2004, it was intensively discussed whether institutional and structural homogeneity are necessary preconditions for real convergence and the smooth functioning of the EU or whether a (further) catching up in the institutional and economic development will endogenously occur after the EU accession. Our paper is dedicated to the analysis of these institutional dynamics within the EU. In particular, we analyze the formation of institutional convergence clusters using Phillips and Sul's (2007, 2009) log t-test over the period 2002 to 2018. Our results indicate the existence of multiple institutional clubs with various countries being stuck in a poor institutional trap. Moreover, we find that institutional convergence clubs are formed mainly on the basis of geographic region; in particular, we identify a northwest-southeast divide. When analyzing per capita income clubs, a rather similar picture emerges, suggesting that the underlying institutional clusters might drive the formation of income clubs. We also study the factors that determine institutional club membership by using an ordered probit model. Most importantly, we find that the initial levels of human capital and institutional quality are decisive for determining whether a country is on a high or low institutional growth path.     

浅释中国地区收入差距:1952-2002

本文对解释中国半个世纪以来地区收入差距演变的各种假说进行了归纳、分析与检验 ,同时提出并检验了 2个主要假说和 4个推论。使用弹性分析与条件收敛分析检验了人力与物质资本、农业生产结构、城乡差距、产业结构、产权结构、政府规模、企业规模、户口结构等多组解释变量对经济增长与收敛的影响 ,并估计了其影响力。上述检验较好地验证了各种竞争性与互补性假说 ,以及本文提出的假说与推论。     

Convergence clustering in the Chinese provinces: New evidence from several macroeconomic indicators

In this paper, the convergence clustering in 31 Chinese provinces regarding several important economic indicators over the period 1952 to 2016 was empirically investigated. Several provincial clusters were identified in the per capita (real) gross domestic product (GDP), consumption–income ratio, retail price, and consumer price inflation rates, using a club convergence and clustering procedure. The empirical findings are as follows. First, it was found that all series of the original data contain a significant nonlinear component. Second, it was observed that there are five significant clusters for the per capita income in China. Third, it was found that there are four significant clusters for the consumption–income ratio. Fourth, it was observed that there are four significant clusters for the retail inflation rates and two significant clusters for the consumer inflation rates in China. These results will enable local and central planners to implement economic growth, savings and price adjustment policies for different groups of provinces.     

我国东中西三大区域经济差距的时空演变特征

以我国东部、中部和西部三大区域作为考察的地域单元,采用相对发展率测量了我国各省的经济发展差距,并通过多层次分解的Theil指数描述了我国东中西三大区域的经济差距以及贡献率的时空演变特征。研究发现:我国各省经济的相对发展率差距很大;三大区域内部经济差距存在"俱乐部收敛"现象,经济差距正在逐年拉大;从贡献率的变动趋势上看,东部和中部内部差距对全国整体差距的贡献率持续下降,而西部的贡献率呈波动特征;三大区域之间的经济差距从1979年以来对全国整体经济差距的贡献率呈持续增大趋势。     

Nonlinearities in economic growth and club convergence

This paper deals with heterogeneity and nonlinearities in the growth process by developing a two-stage strategy to identify and estimate a club convergence model with threshold externalities. Because of identification and collinearity problems, we develop an entropy-based estimation procedure which simultaneously takes account of ill-posed and ill-conditioned inference problems. First, clubs are identified by introducing a mapping structure in a conditional convergence model. Finally, we estimate a multiple club convergence model, where clubs correspond to subsets of total observations. Our procedure is applied to assess the existence of club convergence for a large sample of countries (1965–2008).     

Club Convergence in Carbon Dioxide Emissions

We examine convergence in carbon dioxide emissions among 128 countries for the period 1960–2003 by means of a new methodology introduced by Phillips and Sul (Econometrica 75(6):1771–1855, 2007a). Contrary to previous studies, our approach allows us to examine for evidence of club convergence, i.e. identify groups of countries that converge to different equilibria. Our results suggest convergence in per capita CO₂ emissions among all the countries under scrutiny in the early years of our sample. However, there seem to be two separate convergence clubs in the recent era that converge to different steady states. Interestingly, we also find evidence of transitioning between the two convergence clubs suggesting either a slow convergence between the two clubs or a tendency for some countries to move from one convergence club to the other.     

中国区域经济趋同的空间异质性研究——来自空间杜宾分位数面板回归的证据

中国区域经济增长是否存在趋同,已有的实证文献在很大程度上忽视了趋同速率的空间异质性。本文基于新古典经济增长理论,构建空间杜宾面板分位数模型,考察了中国336个地级市经济增长趋同的空间异质性。研究表明,中国各地市经济增长总体上呈趋同状态,趋同速率随分位点增大呈U型。考虑资本在区域间自由流动,中低增长地区储蓄率作用显著降低。高增长地区受到周边经济带动作用小于中低增长地区,因而高增长地区的趋同速率更大。进一步分析发现,南、北方地区,东、西部地区均表现出俱乐部趋同特征,而中部地区内部表现出分异态势,即高增长地区发散,低增长地区趋同的特征。识别区域经济增长的空间异质性,对于政府更好地实施区域协调发展战略,缩小区域经济差异非常重要。     

Assessing economic convergence in the EU: is there a perspective for the ‘cohesion countries’?

This article analyses the stochastic income convergence within the EU-15. The empirical analysis uses per capita GDP, in PPP and in constant prices of 2005 for the period 1950 to 2010. Apart from the traditional DF type tests we also account for possible structural changes. In this direction, we employ the Zivot-Andrews (1992) and the Lee-Strazicich (1999, 2003) testing procedures, for one and two breaks, endogenously determined. Furthermore, we apply the Carlino and Mills (1993) methodology proposed for the detection of β-convergence. The overall evidence supports the existence of two discrete clubs, the first by the ‘cohesion countries’ (Portugal, Ireland, Greece and Spain) and the second by the remaining members. In particular, there is a clear evidence of convergence within each club, whereas between clubs there is a luck of catching-up effects. Furthermore, investigation of correlation between relative per capita GDP of each country and several factors that are often identified as growth stimulants, namely Total Factor Productivity, FDI, investment and openness confirm, with the exception of Greece, a strong association between these factors and the convergence process. However, progress in the convergence has not been uniform across countries and over time, reflecting the specific interactions between domestic and international factors and their impact on the convergence process of individual countries.     

Inequality convergence

Evidence is found that within-country income inequalities have been slowly converging since the 1980s; inequality is tending to fall (rise) in countries with initially high (low) inequality. Correcting for classical measurement error in the initial inequality measures has little affect on the speed of convergence.