Saban Nazlioglu , İbrahim Huseyni , Ahmet Tunc , James E. Payne
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Productivity convergence in international trade: The role of industrial-based policies
The Prebisch-Singer hypothesis implies divergence in the terms of trade between developing and developed countries but does not eliminate the possibility of convergence if productivity in developing countries’ exports sufficiently improves. This study constructs a new and unique export sophistication dataset for the productivity of high-technology export products to examine convergence behavior of developed and emerging market countries. Relative and weak σ-convergence tests reveal overall productivity divergence in international trade. However, there are convergence clubs whereby income, R&D expenditures, foreign direct investment, and educational expenditures yield similar effects on the convergence club formation in both developed and emerging market countries.
期刊介绍:
The Journal of Policy Modeling is published by Elsevier for the Society for Policy Modeling to provide a forum for analysis and debate concerning international policy issues. The journal addresses questions of critical import to the world community as a whole, and it focuses upon the economic, social, and political interdependencies between national and regional systems. This implies concern with international policies for the promotion of a better life for all human beings and, therefore, concentrates on improved methodological underpinnings for dealing with these problems.