Posts Tagged ‘σ Convergence’

PATTERNS OF SPATIAL DEVELOPMENT: EVIDENCE FROM RUSSIA

Veronika MASLIKHINA

Ph.D. in Economics, Associate Professor of  Department of Management and Law, Volga State University of Technology, Yoshkar-Ola, Russia

Maslikhina_nika@mail.ru

Abstract

The aim of the paper is to analyze the trends of spatial inequality in Russia in 1994-2015 based on the convergence concepts. Russia faced the problem of inter-regional inequality as well as most countries. The situation is aggravated by the external economic and domestic factors in recent years. The fall in energy prices and Western sanctions had a negative impact on the country’s economic development. Russia is compelled to take into account geopolitical interests in the implementation regional policies in some regions (the Far East, the Crimea, the Kaliningrad region, the republics of the North Caucasus, the Arctic). Many regional budgets have budget deficit, highly debt load. They optimize spending on the social sphere and reduce investments in the real economy. Russia is emerging from the crisis despite the difficult situation. A review of the theoretical positions of the four types of convergence concepts (σ-, β-, γ-, ρ-convergence) was made. The spatial inequality evaluation was carried out on the basis of σ-convergence and absolute β-convergence concepts. The Williamson coefficient, the Hoover index, the Theil index and the Atkinson index were used to analyze spatial inequality based on the σ-concept. Differentiation has increased over the analyzed period, but gap decreased after 2005. The  convergence speed  is 1.79% in Russia. Regions with a low initial level of development have higher growth rates than regions with a higher initial level of development

Keywords: spatial inequality, spatial development, β-convergence, σ-convergence, Russia

JEL classification: D63, O52, R1, R58
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ANALYSIS OF GROWTH AND CONVERGENCE OF CO2 EMISSIONS IN BRICS NATIONS

Ramesh CHANDRA DAS

Department of Economics, Katwa College, West Bengal, India-713130, Phone No. +919474783455

ramesh051073@gmail.com

Abstract

The developmental gap among the countries or regions sometimes depends on the narrowing of the gap between carbon emissions as the latter leads to more industrial growth. The present study endeavors to test whether the BRICS nations are converging in terms of per capita CO2 emission over time for the period 1992-2014. We have applied the Barro and Sala-i-Martin’s (2004) unconditional and conditional β convergence definitions, and σ convergence definition on the data of the World Bank for the said period. The results show that there were no signs of cross country convergence in terms of β convergence definition (or the catching up process) but the countries were converging in line with the σ convergence definition for three different time durations indicating pre entry to and post entry of the BRICS Group. Attempting to a set of conditional variables like fuel consumption, energy intensity, per capita growth rate, FDI flow, trade openness, population, import share to GDP, etc. we did not find any such variable explaining whether there were any sort of conditional convergence. The cross country convergence in income in the group can also be attributable to this CO2 convergence.

Keywords: Per capita CO2 emission, β convergence, σ convergence, BRICS

JEL classification:

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CONVERGENCE REVISITED: CASE OF EU AND EASTERN EUROPE

Olcay ÇOLAK
Uşak University, Faculty of Economics and Administrative Sciences, Department of Economics, 1 Eylul Kampusu, 64100/Uşak-TURKEY
olcaycolak10@yahoo.com

Abstract
This paper aims to analyze the convergence pattern of the Central and Eastern European (CEE) and South Eastern European (SEE) to the developed older member countries of European Union. In this context, by performing panel data analysis to 33 countries and each subgroup between 1993 and 2012, results reveal that there is a strong tendency on convergence for the new entrants of European Union after 2004 and for the candidate countries in terms of both convergence types which confirm the findings of neoclassical paradigm states that poorer countries will grow faster than richer ones. The speed of β convergence varies between 1.3 % to 4.2 for each group and the findings suggest that private domestic investment is the most leading determinant of growth and convergence process of Eastern European countries.

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