Jump to ContentJump to Main Navigation
Show Summary Details
More options …

Review of Economic Perspectives

Národohospodárský obzor; The Journal of Masaryk University

4 Issues per year


CiteScore 2016: 0.50

SCImago Journal Rank (SJR) 2016: 0.262
Source Normalized Impact per Paper (SNIP) 2016: 0.516

Open Access
Online
ISSN
1804-1663
See all formats and pricing
More options …
Volume 16, Issue 4 (Dec 2016)

Issues

GDP growth and convergence determinants in the European Union: a crisp-set analysis

Paulo Ferreira
  • Corresponding author
  • CEFAGE-UE, IIFA, Universidade de Évora, Largo dos Colegiais 2, 7000 Évora, Escola Superior Agrária de Elvas, Instituto Politécnico de Portalegre, Portugal
  • Email
  • Other articles by this author:
  • De Gruyter OnlineGoogle Scholar
/ Andreia Dionísio
Published Online: 2016-12-17 | DOI: https://doi.org/10.1515/revecp-2016-0017

Abstract

Economic growth and convergence remains a topical issue. This study uses a crisp-set qualitative comparative analysis of data from European Union countries in order to establish which conditions could be considered necessary and sufficient to make these countries converge. Based on six different conditions (GDP, secondary education, life expectancy, fertility rate, government consumption and inflation rate), this study finds that the main conditions affecting convergence are government consumption ratio (lower levels will increase convergence), education levels and life expectancy (both with a positive influence on convergence). The first two conditions show quite interesting results: in fact, reduction of government expenditure and budget constraints are an open debate; and the European Union’s aim to become a more competitive economy can only be attained with higher levels of education.

Keywords: Convergence; crisp-set qualitative comparative analysis; European Union; necessary conditions; sufficient conditions

References

  • AGHION, P., HOWITT, P., MAYER-FOULKES, D. (2005). The effect of financial development on convergence: Theory and evidence. Quarterly Journal of Economics, 120(1), 173-222.Google Scholar

  • AZOMAHOU, T., BOUCEKKINE, R., DIENE, B. (2009). A closer look at the relationship between life expectancy and economic growth. International Journal of Economic Theory, 5(2), 201-244.CrossrefWeb of ScienceGoogle Scholar

  • BADUNENKO, O., HENDERSON, D., RUSSELL, R. (2013). Polarization of the worldwide distribution of productivity. Journal of Productivity Analysis, 40, 153-171Web of ScienceCrossrefGoogle Scholar

  • BARRO, R. (1991). Economic growth in a cross section of countries. Quarterly Journal of Economics, 106, 407-443.CrossrefGoogle Scholar

  • BARRO, R. (1996). Determinants of economic growth: a cross-country empirical study. NBER Working Paper 5698.Google Scholar

  • BARRO, R. (2016). Economic growth and convergence, applied especially to China. NBER working paper 21872.Google Scholar

  • BARRO, R., SALA-I.MARTIN, X. (1992). Convergence. Journal of Political Economy. 100, 223-51. DOI: 10.1086/261816Web of ScienceCrossrefGoogle Scholar

  • BARRO, R., SALA-I.MARTIN, X., BLANCHARD, O., HALL, R. (1991). Convergence across states and regions, Brookings Papers on Economic Activity, 1, 107-58. DOI: 10.2307/2534639CrossrefGoogle Scholar

  • BARTKOWSKA, M., RIEDL, A. (2012). Regional convergence clubs in Europe: Identification and conditioning factors. Economic Modelling. 29, 22-31. DOI: 10.1016/j.econmod.2011.01.013CrossrefWeb of ScienceGoogle Scholar

  • BATTISTI, M., DE VAIO, G. (2008). A spatially filtered mixture of β-convergence regressions for EU regions, 1980-2002. Empirical Economics, 34(1), 105-121 DOI: 10.1007/s00181-007-0168-8Web of ScienceCrossrefGoogle Scholar

  • BAUMOL, W. (1986). Productivity growth, convergence, and welfare: what the longrun data show. American Economic Review, 76 (5), 1072-1085.Google Scholar

  • BERNARD, A., DURLAUF, S. (1995). Convergence in International Output. Journal of Applied Econometrics. 10(2), 97-108. DOI: 10.1002/jae.3950100202Web of ScienceCrossrefGoogle Scholar

  • BRADA, J., KUTAN, A., ZHOU, S. (2005). Real and monetary convergence between the European Union’s core and recent member countries: A rolling cointegration approach. Journal of Banking & Finance. 29, 249-270. DOI: 10.1016/j.jbankfin.2004.06.024CrossrefGoogle Scholar

  • CARLINO, G., MILLS, L. (1993). Are U.S. regional incomes converging? A time series analysis. Journal of Monetary Economics. 32, 335-346. DOI: 10.1016/0304-3932(93)90009-5CrossrefGoogle Scholar

  • CARLINO, G., MILLS, L. (1996). Convergence and the U.S. States: a time-series analysis. Journal of Regional Science. 36, 597-616. DOI: 10.1111/j.1467-9787.1996.tb01120.xCrossrefGoogle Scholar

  • CARRION-I-SILVESTRE, J., GERMAN-SOTO, V. (2007). Stochastic convergence amongst Mexican states. Regional Studies. 41, 531-541. DOI: 10.1080/00343400601120221CrossrefGoogle Scholar

  • CUARESMA, J., DOPPELHOFER, G., FELDKIRCHER, M. (2014). The Determinants of Economic Growth in European Regions. Regional Studies, 48(1), 44-67. DOI: 10.1080/00343404.2012.678824Web of ScienceCrossrefGoogle Scholar

  • DURLAUF, S., JOHNSON, P., TEMPLE, J. (2005). Growth econometrics, in (P. Aghion and S.N. Durlauf, eds.), Handbook of Economic Growth, Amsterdam: North Holland.Google Scholar

  • DURLAUF, S., KOURTELLOS, A., TAN, C. (2008). Are any growth theories robust? The Economic Journal, 118, 329-346. DOI: 10.1111/j.1468-0297.2007.02123.xCrossrefGoogle Scholar

  • EVANS, P., KARRAS, G. (1996). Convergence revisited, Journal of Monetary Economics. 37, 249-65. DOI: 10.1016/S0304-3932(96)90036-7CrossrefGoogle Scholar

  • FISS, P. (2007). A set-theoretic approach to organizational configurations. Academy of Management Review, 32(4), 1180-1198. DOI: 10.5465/AMR.2007.26586092CrossrefGoogle Scholar

  • FISS, P. (2011). Building better causal theories: a fuzzy set approach to typologies in organization research. Academy of Management Journal, 54 (2), 393-420. DOI: 10.5465/AMJ.2011.60263120CrossrefGoogle Scholar

  • HAYNES, P. (2014). Combining the Strengths of Qualitative Comparative Analysis with Cluster Analysis for Comparative Public Policy Research: With Reference to the Policy of Economic Convergence in the Euro Currency. Area International Journal of Public Administration, 37(9), 581-590, DOI: 10.1080/01900692.2014.880849CrossrefGoogle Scholar

  • HAYNES, P. (2015). The European Single Currency Project and the Concept of Convergence for European Welfare States - The Ideal and the Reality. Social Policy & Administration, 49(4), 466-489 .Web of ScienceCrossrefGoogle Scholar

  • HENDERSON, D., RUSSELL, R. (2005). Human capital and convergence: a production- frontier approach. International Economic Review, 46 (4), 1167-1205CrossrefGoogle Scholar

  • JOHNSON, P. (2005). A continuous state space approach to convergence by parts. Economics Letters, 86, 317-321.CrossrefGoogle Scholar

  • KUMAR, S., RUSSELL, R. (2002). Technological change, technological catch-up, and capital deepening: relative contributions to growth and convergence. American Economic Review, 92(3), 527-548.CrossrefGoogle Scholar

  • LOEWY, M., PAPELL, D. (1996). Are US regional incomes converging? Some further evidence. Journal of Monetary Economics. 38, 587-598.CrossrefGoogle Scholar

  • LUCAS, R. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22, 3-42.CrossrefGoogle Scholar

  • MONTAÑÉS, A., OLMOS, L. (2014). Do the Spanish regions converge? A unit root analysis for the HDI of the Spanish regions. Applied Economics. 46, 4218-4230.CrossrefWeb of ScienceGoogle Scholar

  • NAHAR, S., INDER, B. (2002). Testing convergence in economic growth for OECD countries. Applied Economics. 34, 2011-2022. DOI: 10.1080/00036840110117837CrossrefGoogle Scholar

  • OWEN, A., VIDERAS, J., DAVIS, L. (2009). Do all countries follow the same growth process? Journal of Economic Growth, 14(4), 265-286.Web of ScienceCrossrefGoogle Scholar

  • PAAP, R., FRANSES, P., VAN DJIK, D. (2005). Does Africa grow slower than Asia, Latin America and the Middle East? Evidence from a new data-based classification method. Journal of Development Economics, 77 (2), 553-570.CrossrefGoogle Scholar

  • QUAH, D. (1993). Galtons fallacy and tests of the convergence hypothesis. Scandinavian Journal of Economics, 95 (4), 427-443.CrossrefGoogle Scholar

  • QUAH, D. (1996). Twin peaks: growth and convergence in models of distribution dynamics. Economic Journal, 106 (437), 1045-1055.CrossrefGoogle Scholar

  • QUAH, D. (1997). Empirics for growth and distribution: stratification, polarization, and convergence clubs. Journal of Economic Growth, 2(1), 27-59.CrossrefGoogle Scholar

  • RAGIN, C. (1987). The Comparative Method: Moving beyond Qualitative and Quantitative Strategies. Berkeley: University of California Press.Google Scholar

  • RAGIN, C. (2006). Set relations in social research: Evaluating their consistency and courage. Political Analysis, 14, 291-310. DOI: 10.1093/pan/mpj019CrossrefGoogle Scholar

  • RAGIN, C. (2008). Redesigning Social Inquiry: Fuzzy Sets and Beyond. Chicago: The University of Chicago Press.Google Scholar

  • RIHOUX, B., DE MEUR, G. (2008). Cirsp-set qualitative comparative analysis (csQCA), in Rihoux, B. and Ragin, C. (Eds) Configurational Comparative Methods - Qualitative Comparative Analysis (QCA) and related techniques. Thousand Oaks, CA: Sage.Google Scholar

  • ROMER, P. (1990). Human Capital and Growth: Theory and Evidence. Carnegie- Rochester Conference Series on Public Policy, 32, 251-286. DOI: 10.1016/0167-2231(90)90028-JCrossrefGoogle Scholar

  • SALA-I-MARTIN, X., DOPPELHOFER, G., MILLER, R. (2004). Determinants of long-term growth: a Bayesian averaging of classical estimates (BACE) approach. American Economic Review, 94(4), 813-35.CrossrefGoogle Scholar

  • SOLOW, R. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70 (1), 65-94.CrossrefGoogle Scholar

  • STRAZICHICH, M., LEE, J., DAY, E. (2004). Are incomes converging among OECD countries? Time series evidence with two structural breaks. Journal of Macroeconomics. 26, 131-145.CrossrefGoogle Scholar

  • VIS, B. (2012). The Comparative Advantages of fsQCA and Regression Analysis for Moderately Large-N Analyses. Sociological Methods & Research, 41(1), 168-98.CrossrefWeb of ScienceGoogle Scholar

  • VIS, B., WOLDENDORP, J., KEMAN, H. (2007). Do miracles exist? Analyzing economic performance comparatively. Journal of Business Research. 60, 531-538.CrossrefGoogle Scholar

  • WALHEER, B. (2016). Growth and convergence of the OECD countries: A multisector production-frontier approach. European Journal of Operational Research. (forthcoming) DOI: 10.1016/j.ejor.2016.01.030 CrossrefGoogle Scholar

About the article

Received: 2016-05-06

Accepted: 2016-09-23

Published Online: 2016-12-17

Published in Print: 2016-12-01


Citation Information: Review of Economic Perspectives, ISSN (Online) 1804-1663, DOI: https://doi.org/10.1515/revecp-2016-0017.

Export Citation

© by Paulo Ferreira. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. BY-NC-ND 4.0

Comments (0)

Please log in or register to comment.
Log in