Beta Convergence and Sigma Convergence: Evidence from Indonesian District-Level Data
Abstract
In this paper, we describe three things, (1) Evidence of Beta-convergence’s existence in Indonesian districts-level data, (2) the reason of why Sigma-convergence may not accompany Beta-convergence, and (3) the demonstration to show that Sigma-convergence cannot be detected at the districts level across Indonesia using Indonesian districts -level data that contains over 277 cross-sectional observations. If Indonesian individual provinces are considered separately, we find only 2 out of 25 provinces with detected Sigma-convergence. But also, in many cases statistically significant Sigma-divergence is found.
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References
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Young, Andrew T., Higgins, Matthew J. and Levy Daniel (2008), “Sigma Convergence versus Beta Convergence: Evidence from U.S. County-Level data”, Journal of Money, Credit and Banking, Vol. 40, N0 5, pp. 1083 – 1093
Barro, Robert J., and Xavier X. Sala-i-Martin.(2004) Economic Growth. Cambridge, MA: MIT Press.
Desdoigts, Alain. (1999) “Patterns of Economic Development.”Journal of Economic Growth, 4, pp. 305–30.
Friedman, Milton. (1992) “Do Old Fallacies Ever Die?” Journal of Economics Literature, 30, pp. 2129–32.
Furceri, David. (2005) “β and σ-Convergence: A Mathematical Relation of Causality.” Economics Letters, 89, pp. 212–5.
Quah, Danny T. (1993) “Galton’s Fallacy and the Convergence Hypothesis.” Scandinavian. Journal of Economics, 95, pp. 427 -43.
Quah, Danny T. (1997) “Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs.” Journal of Economic Growth, 2, pp. 27–59.
Young, Andrew T., Higgins, Matthew J. and Levy Daniel (2008), “Sigma Convergence versus Beta Convergence: Evidence from U.S. County-Level data”, Journal of Money, Credit and Banking, Vol. 40, N0 5, pp. 1083 – 1093
Published
2017-05-07
How to Cite
HENDAJANY, Nenny; SAEPUDIN, Didin; SUAESIH, Ae.
Beta Convergence and Sigma Convergence: Evidence from Indonesian District-Level Data.
Jurnal Ekonomi Kuantitatif Terapan, [S.l.], may 2017.
ISSN 2303-0186.
Available at: <https://ojs.unud.ac.id/index.php/jekt/article/view/23816>. Date accessed: 27 apr. 2024.
doi: https://doi.org/10.24843/JEKT.2017.v10.i01.p03.
Section
Articles
Keywords
Beta-convergence, Sigma-convergence and speed of convergence
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