Location of Repository

"Convergence and Catching Up in ASEAN: A Comparative Analysis"

By Lee Kian Lim and Michael McAleer


The increasing diversity of average growth rates and income levels across countries has generated a large literature on testing the income convergence hypothesis. Most countries in South-East Asia, particularly the five founding ASEAN member countries (ASEAN-5), have experienced substantial economic growth, with the pace of growth having varied substantially across countries. Recent empirical studies have found evidence of several convergence clubs, in which per capita incomes have converged for selected groupings of countries and regions. This paper applies different time series tests of convergence to determine if there is a convergence club for ASEAN-5, as well as ASEAN-5 and the USA. The catching up hypothesis states that the lagging country, with low initial income and productivity levels, will tend to grow more rapidly by copying the technology of the leader country, without having to bear the associated costs of research and development. Given the important effects of technological change on growth, this paper also examines whether ASEAN-5 is catching up technologically to the USA.

OAI identifier:

Suggested articles



  1. (1992). A Contribution to the Empirics of Economic Growth,
  2. (1991). A New Empirical Approach to Catching Up or Falling Behind,
  3. (1987). A Simple, Positive Semi-Definite,
  4. (1992). A Tale of Two Cities: Factor Accumulation and
  5. (1995). A Time Series Perspective on Convergence: Australia,
  6. (2000). Asymptotically Perfect and Relative Convergence of Productivity,
  7. (1995). Conditional Convergence in East Asian Countries: The Role of Exports in Economic Growth,
  8. (1998). Demographic Transition, Education and Economic Growth in East Asian Countries,
  9. (1994). Economic Interdependence in the Asia-Pacific Region: Towards a Yen Bloc,
  10. (1999). Education Statistics Digest, Ministry of Education, Singapore, various years. Singapore, Yearbook of Statistics Singapore, Department of Statistics, Singapore, various years.
  11. (1996). Empirics for Economic Growth and Convergence,
  12. (1991). Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models,
  13. (1995). Explaining Miracles: Growth Regressions Meet the Gang of Four,
  14. (1993). Finite Sample Sizes of Johansen’s Likelihood Ratio Test for Cointegration,
  15. (1993). Galton’s Fallacy and Tests of the Convergence Hypothesis,
  16. (1998). Generalizations of the KPSS-test for Stationarity, Econometric Institute
  17. (1997). Growth and Convergence in a Multi-Country Empirical Stochastic Solow Model,
  18. (1996). Interpreting Tests of the Convergence Hypothesis,
  19. (1999). Modelling Economic Growth in South-East Asia, Unpublished
  20. (1995). Monitoring the World Economy 1820-1992, Paris: Development Centre of the OECD.
  21. (1994). Technology and Growth: The Complex Dynamics of Convergence and Divergence,
  22. (1994). Testing the Convergence Hypothesis,
  23. (1992). Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root: How Sure Are We that Economic Time Series Have a Unit Root,
  24. (1999). The Association of South-East Asian Nations Secretariat Homepage,
  25. (1996). The Classical Approach to Convergence Analysis,
  26. (1993). The East Asian Miracle: Economic Growth and Public Policy,
  27. (1997). The Empirics of Growth and Convergence: A Selective Review,
  28. (1989). The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis,
  29. (1991). The Penn World Table (Mark 5): An Expanded
  30. (1994). The Penn World Table 5.6,
  31. (1995). The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience,
  32. (1996). Working with Microfit 4.0: Interactive Econometric Analysis,
  33. (1998). World Bank World Tables, International Databases, dX for Windows.

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.