CROSS-COUNTRY INCOME DIFFERENCES: EMERGING ECONOMIES
CROSS-COUNTRY INCOME DIFFERENCES: EMERGING ECONOMIES
Author(s): Iulia ROȘOIUSubject(s): Social Sciences, Economy, Supranational / Global Economy, Business Economy / Management
Published by: Fundatia Română pentru Inteligenta Afacerii
Keywords: Basic Solow Model; Augmented Solow Model; Convergence; Steady state; Cross-country analysis;
Summary/Abstract: The purpose of this article is to analyze why there are very large differences in income per capita (or output per worker) across countries today and to examine whether countries with same characteristics will develop in the same time and will grow fast enough to reduce the income gap between themselves. The empirical study analyzes the income evolution of six countries over the period 1995-2016: Romania, Poland, Hungary, Croatia, Czech Republic and Bulgaria. Several models are estimated in order to test the „unconditional convergence” and „conditional convergence”. The second type of convergence is tested based on Solow model, which includes investments in physical capital and population growth (increased with technological growth and capital depreciation rate) and based on Augmented Solow model, which adds human capital.
Journal: Network Intelligence Studies
- Issue Year: VII/2019
- Issue No: 13
- Page Range: 43-53
- Page Count: 11
- Language: English