Naslov
Testing for Convergence in Competitiveness and Growth in Selected Economies from 1994 to 2020

Autori
Škare, Marinko ; Porada-Rochon, Małgorzata ; Stjepanović, Saša

Izvornik
Journal of Competitiveness (1804-171X) 13 (2021), 3; 147-164

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
competitiveness ; convergence ; club clustering ; non-linear time-varying factor model ; economic growth

Sažetak
Competitiveness on a small and large scale is necessary for growth. A definitive link between the level of competitiveness and growth has been difficult to prove. One of the primary objectives of economic planning is to promote price and exchange rate stability. Entrepreneurialism and productivity also increase the country’s export competitiveness. The aim of this study is to test for the convergence in competitiveness and convergence club existence in selected economies. No previous research had tested for convergence in competitiveness using a nonlinear timevarying factor model. This paper provides an overview on convergence in competitiveness and convergence clubs’ existence for 42 countries using quarterly data from 1994q1 to 2020q4 testing on competitiveness. Convergence log (t) test results show differences in competitiveness between classified convergence clubs. Russia, Brazil, and Turkey are the clubs (groups of countries) that show a transitional path (convergence in competitiveness) that differs entirely from the rest of the sample. Countries with more natural resources and exogenous monetary policies follow a unique development path to competitiveness. We find no evidence of divergence in countries within the clubs. However, we find a club (group of countries) following a clear divergence path from the other countries (Russia, Brazil, and Turkey). Our findings could potentially explain the increase in divergence in competitiveness across countries after the financial crisis of 2008.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA