Income convergence and the degree of openess: the case of selected Muslim countries
This article examines income convergence or divergence behavior between ten selected OIC (the Organisation of Islamic Conference) economies and the benchmark country of the United States for the period 1970 to 2004. The results are then linked to the degree of openness of the countries under stud...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2009
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/6686/1/Income_Convergence_and_the_Degree_of_Openess_-_The_Case_of_Selected_Muslim_Countries.pdf http://irep.iium.edu.my/6686/ http://www.usim.edu.my/usimweb/index.php?option=com_content&view=article&id=312%3Aislamic-economics-conference-2009-iecons&Itemid=482 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | This article examines income convergence or divergence behavior between ten
selected OIC (the Organisation of Islamic Conference) economies and the benchmark
country of the United States for the period 1970 to 2004. The results are then linked to
the degree of openness of the countries under study based on globalization indices. To
investigate convergence hypothesis, income differentials between the OIC countries
and the benchmark country are computed and a series of test is performed. The tests
include Augmented Dickey-Fuller (ADF) stationary linearity test and Kapetanois et al.
(KSS) non-linear stationary test. The findings indicate that most of the countries
experience income divergence except for three economies. By analyzing the degree of
globalization in these economies, it is found that the results support the endogenous
theory and dependency approach which predicts that globalization is likely to cause
income divergence (inequality) rather than convergence (equality). |
|---|