Examining Sigma and Beta Convergence in Emerging Market Economies

Author:

Sharma Prakarti1ORCID,Sharma Nidhi1ORCID

Affiliation:

1. Department of Humanities and Social Sciences, Malaviya National Institute of Technology, Jaipur, Rajasthan, India

Abstract

This study examines convergence among the select emerging market economies (EMEs) over two decades, from 2000 to 2020. The coefficient of variation was used to measure sigma convergence. Cross-sectional and panel regression analyses were performed to examine unconditional and conditional beta convergence, respectively. The macroeconomic variables chosen for the panel regression analysis were gross fixed capital formation, current account balance, inflation, research and development expenditure, world governance index and life expectancy index. The results supported the presence of convergence (both sigma and beta) among the EMEs over the selected period. In addition, it was found that, except for the current account balance, all selected variables contributed significantly to the growth process of EMEs.

Publisher

SAGE Publications

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