Three essays on economic globalization and regional income convergence
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Date
2015-04-16
Authors
Zhao, Jun
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Abstract
This dissertation consists of three empirical essays, investigating the impact of globalizing flows on the pattern of income convergence at both inter and intra-regional levels. The first essay answers two questions. First, to what extent have peripheral world regions been converging (or diverging) to (or from) the core world region of North America since 1970? In terms of the performance of individual peripheral regions relative to the core, there is no evidence that any region has persistently converged toward or diverged from the core region (in terms of per capita income). Among globalizing flows, none of them are found to be significantly associated with changes in inter-regional income gaps.
The second essay seeks to determine the patterns of intra-regional income convergence (or divergence) in Latin America and the Caribbean and assesses the effects of inter- and intra-regional flows on the tendency to converge or diverge. Log t convergence tests indicate the existence of convergence club(s). Sigma convergence tests do not show any falling trends in income dispersion for the region and each of its convergence clubs. Our regression results also suggest that only the flows of inter-regional export and import in high technology products have long-run convergent effects on the pattern of convergence in Latin America and the Caribbean.
The third essay examines the patterns of intra-regional income convergence (or divergence) in East and South-East Asia and investigates the effects of inter- and intra-regional flows on the pattern of intra-regional convergence (or divergence). Log t convergence tests identify the existence of two convergence clubs from 1970 to 2010. Although sigma convergence tests do not show any overall convergence trends for the entire period of study, they indicate a persistent decrease in the income dispersion of one club and a relatively stable income distribution in another club over the latest two decades. Our regression results suggest that intra-regional trade, especially intra-regional trade in high-technology goods, has a strong tendency to promote income convergence across countries in East and South-East Asia.
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Keywords
globalization, income convergence