Economic Growth and Convergence across the OIC Countries

Unal, Umut (2014): Economic Growth and Convergence across the OIC Countries. Published in: International Journal of Research in Commerce, Economics and Management , Vol. 4, No. 04 (15 April 2014)

Abstract

The main purpose of this study is to analyze whether the Organization of Islamic Cooperation (OIC) countries show a regional economic convergence during the last three decade. Following the other leading studies in the literature, income convergence in the OIC countries is estimated by using the following two methods: (i) absolute income convergence; (ii) conditional income convergence. As an extension, the determinants of growth across the countries are also examined. For a given starting level of real per capita GDP, the growth rate is enhanced by higher schooling and investment rate, better maintenance of the rule of law, lower fertility and improvements in the terms of trade. For given values of these and other variables, growth is adversely related to the initial level of real per capita GDP.

• Item Type: MPRA Paper
• Language: English
• Keywords: Convergence, economic growth, human capital.
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

References

Bagci, K. (2012). Explaining income disparity among the OIC countries. Economic Cooperation and Development Review, Vol.5, 1: 43-53.

Barro, R.J. (1996). Determinants of economic growth. NBER Working Papers 5698, National Bureau of Economic Research.

Barro R.J. and X. Sala-i Martin. (2004). Economic Growth 2nd Edition. The MIT Press. Cambridge-Massachusetts.

Becker G.S., and R.J.Barro. (1988). A reformulation of the economic theory of fertility. Quarterly Journal of Economics, 103: 1-25.

Bernanke B.S., and R. S. Gurkaynak. (2001). Is growth exogenous? Taking Mankiw, Romer and Weil seriously. NBER Working Papers 8365, National Bureau of Economic Research.

Blomstrom, M., R.E. Lipsey, and M. Zejan. (1993). Is fixed investment the key to economic growth. CEPR Discussion Papers 870.

Cass, D. (1965). Optimum growth in an aggregate model of capital accumulation. Review of Economic Studies 32: 233 240.

Islam, N. (1995). Growth empirics: A panel data approach. Quarterly Journal of Economics 110(November):1127-1170.

Koopmans, T. C. (1965). On the concept of optimal economic growth. In Scientific Papers of Tjalling C. Koopmans. New York: Springer-Verlag.

Levine, R., and D. Renelt. (1992). A sensitivity analysis of cross-country growth regressions. American Economic Review 82.

Lucas, R E. Jr. (1988). On the mechanics of economic development. Journal of Monetary Economics, 3-42.

Mankiw, N. G., D. Romer, and D. N. Weil. (1992). A contribution to the empirics of economic growth. Quarterly Journal of Economics 107: 407-437.

Romer, P. M., (1986). Increasing returns and long-run growth. Journal of Political Economy, 94:5, 1002-37.

Solow, R. M. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics 70: 65 94.

United Nations (2012). Macroeconomic stability, inclusive growth and employment. Available online at: http://www.un.org/millenniumgoals/pdf/Think%20Pieces/12_macroeconomics.pdf

Uzawa, H. (1965). Optimal technical change in an aggregative model of economic growth. International Economic Review 6: 18-31.