Economic convergence in a globalized world: The role of business cycle synchronization

Author:

Lopez AndresORCID,De Lucas SoniaORCID,Delgado Maria Jesus

Abstract

Increasing economic integration and global synchronization can be key for countries aiming to catch up in GDP per capita terms. Little attention has hitherto been placed in synchronization as determinant of convergence. In this paper we estimate the effect of economic globalization and synchronization on income convergence for a sample of 89 developed and developing countries in the period 1970–2015. We use a dynamic factor model and panel data techniques to undertake the objectives of the paper. We show that synchronized countries (those correlated with the factor) exhibit a higher response on GDP per capita growth with variations on the global business cycle. This implies that synchronization improves growth for that group in global expansionary phases, but also implies risks during global recessions. On the contrary, the effect on growth of an economic globalization index is less relevant for synchronized countries than for asynchronized countries. The latter result implies that asynchronized countries can benefit more increasing their levels of economic globalization.

Publisher

Public Library of Science (PLoS)

Subject

Multidisciplinary

Reference41 articles.

1. “Why Nations Fail: The Origins of Power, Prosperity and Poverty” (1st). 1st ed;D. Acemoglu;New York: Crown,2012

2. "Globalization, Institutions, and Income Convergence,";K. Harger;Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association,2017

3. "Economic growth, human capital and structural change: A dynamic panel data analysis,";A. A.C. Teixeira;Research PolicyElsevier,2016

4. "Convergence,";R. J Barro;Journal of Political EconomyUniversity of Chicago Press,1992

5. R&D, implementation and stagnation: a Schumpeterian theory of convergence clubs;P. Howitt;Journal of Money, Credit and Banking,2005

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3