Economic Growth and Convergence : Global Analysis through Econometric and Hidden Markov Models book cover
1st Edition

Economic Growth and Convergence
Global Analysis through Econometric and Hidden Markov Models

ISBN 9780367774882
Published July 1, 2021 by Routledge
196 Pages 62 B/W Illustrations

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Book Description

There are many different types of convergence within economics, as well as several methods to analyse each of them. This book addresses the concept of real economic convergence or the gradual levelling-off of GDP (gross domestic product) per capita rates across economies.

In addition to a detailed, holistic overview of the history and theory, the authors include a description of two modern methods of assessing the occurrence and rate of convergence, BMA-based and HMM-based, as well as the results of the empirical analysis. Readers will have access not only to the conventional econometric approach of β convergence but also to an alternative one, allowing for the convergence issue to be expressed in the context of automatic pattern recognition. This approach is universal as it can be adapted to a variety of input data. The lowest aggregation level study investigates regional convergence through the case of Polish voivodships, where convergence towards the leader is tested. On a higher level of aggregation, the authors examine the existence of GDP convergence in such groups as the EU28, North Africa and the Middle East, sub-Saharan Africa, South America, Caribbean, South-East Asia, Australia and Oceania, or post-socialist countries. For each group, the real β convergence is tested using the two above-mentioned approaches. The results are widely discussed, broadly illustrated, interpreted, and compared. The analysis allows readers to draw interesting conclusions about the causes of convergence or the drivers behind divergence. The book will stimulate further research in the field, but the research was conducted from the point of view of individual countries.

Table of Contents

1. Real income-level convergence: The theoretical background 2. Hidden Markov models as an example of an alternative approach to convergence 3. Different approaches to regional convergence 4. Conventional convergence in the worldwide perspective 5. Application of the Hidden Markov Models in convergence studies: a worldwide perspective

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Michał Bernardelli is Associate Professor and Vice-Dean of Graduate Studies at the SGH Warsaw School of Economics. He is a Doctor of mathematics with habilitation in the field of economic sciences. The interdisciplinarity of his scientific works is based mainly on the use of the IT and mathematical apparatus to solve problems in areas related to data analysis and exploration, in particular in Big Data issues, predictive methods, and optimization. For almost 20 years, he was a lecturer at courses related to studies in quantitative methods, as well as a consultant and contractor of many scientific and commercial projects.

Mariusz Próchniak is Associate Professor, Head of Department of Economics II, and Dean of Collegium of World Economy at SGH Warsaw School of Economics. He is the author or co-author of many books and journal articles on macroeconomics, including economic growth, real economic convergence, and quantitative studies in macroeconomics. He teaches both micro- and macroeconomics at undergraduate, graduate, and postgraduate (including MBA) courses.

Bartosz Witkowski is Full Professor, Head of the Institute of Econometrics, and Dean of Undergraduate Studies at SGH Warsaw School of Economics. He is the author and co-author of about 100 journal articles and books dedicated to the use of econometrics, particularly panel data, in economics and finance. His main research area is microeconometrics. For 20 years, he has been teaching various courses on econometrics and the use of quantitative methods at each level of studies as well as co-operating with numerous institutions such as the National Bank of Poland or the World Bank for providing training and expertise in this area.