ASEAN ten economies: converge or diverge?

The government of the ten ASEAN economies recognized that the disparity in income level among the more developed and the less developed ASEAN economies is substantial. Our question is: Over the years is there any tendency that income disparity among ASEAN is narrowing? Thus, the purpose of the prese...

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Main Authors: Habibullah, Muzafar Shah, Din, Badariah, Chong, Choy Yoke
Format: Conference or Workshop Item
Language:English
Published: Fakulti Sains Sosial dan Kemanusiaan, Universiti Kebangsaan Malaysia 2017
Online Access:http://psasir.upm.edu.my/id/eprint/67020/
http://psasir.upm.edu.my/id/eprint/67020/1/ICOSH-1.pdf
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author Habibullah, Muzafar Shah
Din, Badariah
Chong, Choy Yoke
author_facet Habibullah, Muzafar Shah
Din, Badariah
Chong, Choy Yoke
author_sort Habibullah, Muzafar Shah
building UPM Institutional Repository
collection Online Access
description The government of the ten ASEAN economies recognized that the disparity in income level among the more developed and the less developed ASEAN economies is substantial. Our question is: Over the years is there any tendency that income disparity among ASEAN is narrowing? Thus, the purpose of the present paper is to examine income convergence and/or divergence in ASEAN ten economies by using the nonlinear unit root test due to Kapetanios et al. (KSS, 2003) and extended by Chong et al. (CHLL, 2008) to permit the test of nonlinear long-run convergence and nonlinear catching-up hypotheses. We apply the KSS-CHLL nonlinear unit root for the test of nonlinear convergence between the ASEAN ten countries with respect to the ASEAN average for the period 1970 to 2015. Generally, our results suggest that out of the ten ASEAN countries, only Indonesia, Malaysia, Singapore and Thailand show nonlinear long-run convergence during the 1980s to 2015; and Cambodia, Laos and Vietnam indicate nonlinear catching-up to the ASEAN average during the same period. However, during other periods – 1970s to 2015 and 1990-2015, the ten ASEAN member countries are diverging from the ASEAN average. This implies that the government of the ASEAN-10 economies have to work harder in order to achieve the aspiration of the ASEAN Economic Community in the far future.
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spelling upm-670202019-03-06T05:38:43Z http://psasir.upm.edu.my/id/eprint/67020/ ASEAN ten economies: converge or diverge? Habibullah, Muzafar Shah Din, Badariah Chong, Choy Yoke The government of the ten ASEAN economies recognized that the disparity in income level among the more developed and the less developed ASEAN economies is substantial. Our question is: Over the years is there any tendency that income disparity among ASEAN is narrowing? Thus, the purpose of the present paper is to examine income convergence and/or divergence in ASEAN ten economies by using the nonlinear unit root test due to Kapetanios et al. (KSS, 2003) and extended by Chong et al. (CHLL, 2008) to permit the test of nonlinear long-run convergence and nonlinear catching-up hypotheses. We apply the KSS-CHLL nonlinear unit root for the test of nonlinear convergence between the ASEAN ten countries with respect to the ASEAN average for the period 1970 to 2015. Generally, our results suggest that out of the ten ASEAN countries, only Indonesia, Malaysia, Singapore and Thailand show nonlinear long-run convergence during the 1980s to 2015; and Cambodia, Laos and Vietnam indicate nonlinear catching-up to the ASEAN average during the same period. However, during other periods – 1970s to 2015 and 1990-2015, the ten ASEAN member countries are diverging from the ASEAN average. This implies that the government of the ASEAN-10 economies have to work harder in order to achieve the aspiration of the ASEAN Economic Community in the far future. Fakulti Sains Sosial dan Kemanusiaan, Universiti Kebangsaan Malaysia 2017 Conference or Workshop Item PeerReviewed text en http://psasir.upm.edu.my/id/eprint/67020/1/ICOSH-1.pdf Habibullah, Muzafar Shah and Din, Badariah and Chong, Choy Yoke (2017) ASEAN ten economies: converge or diverge? In: 6th International Conference on Social Sciences and Humanities (ICOSH-UKM 2017), 4-6 Apr. 2017, Dewan Perdana FSSK, Fakulti Sains Sosial dan Kemanusiaan, Universiti Kebangsaan Malaysia. (pp. 31-43).
spellingShingle Habibullah, Muzafar Shah
Din, Badariah
Chong, Choy Yoke
ASEAN ten economies: converge or diverge?
title ASEAN ten economies: converge or diverge?
title_full ASEAN ten economies: converge or diverge?
title_fullStr ASEAN ten economies: converge or diverge?
title_full_unstemmed ASEAN ten economies: converge or diverge?
title_short ASEAN ten economies: converge or diverge?
title_sort asean ten economies: converge or diverge?
url http://psasir.upm.edu.my/id/eprint/67020/
http://psasir.upm.edu.my/id/eprint/67020/1/ICOSH-1.pdf