Economics at your fingertips  

Catching-up process in the transition countries

Omid Ranjbar (), Tsangyao Chang (), Chien-Chiang Lee () and Zahra Mila Elmi ()
Additional contact information
Omid Ranjbar: Allameh Tabataba’i University
Zahra Mila Elmi: University of Mazandaran

Economic Change and Restructuring, 2018, vol. 51, issue 3, 249-278

Abstract: Abstract This paper revisits the catching-up hypothesis among the 29 transition countries using the time series approach to investigate income convergence. In this study, we propose a model which specifies a trend function incorporating both sharp and smooth breaks using dummy variables and Fourier functions, respectively. Our empirical results indicate that two convergence clubs are forming among the transition countries and one club is among the rich and the other club is among the poor countries, where most middle income countries will disappear and move into one of the two clubs. Also, our results indicate that the 1980s was an ominous decade for growth in the transition countries with income in most diverging from the USA. With recovery in the 1990s, we find that in the 2000s income per capita in most of these countries was catching up toward the USA.

Keywords: Transition countries; Convergence; Smooth breaks; Sharp breaks; Distribution dynamics (search for similar items in EconPapers)
JEL-codes: C32 O41 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10644/PS2

Access Statistics for this article

Economic Change and Restructuring is currently edited by George Hondroyiannis

More articles in Economic Change and Restructuring from Springer
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-04-11
Handle: RePEc:kap:ecopln:v:51:y:2018:i:3:d:10.1007_s10644-017-9214-5