50 Years of Real Convergence – Without Extractives Dependency and Tax Havens
Keywords:
real convergence, extractives dependency, tax havens, O47, P52, Q32Abstract
In the world economy real convergence cannot be detected in the long term and lack of convergence is discussed in this article. The analysis is based on results and debates of economic growth theory and development studies. Special focus is placed on extractives dependent and tax haven countries and the article concludes that these countries considerably contribute to the partial real convergence process, limited only to some regions of the world economy. This paper also studies some common criteria of the catching-up process of emerging countries to developed economies. It concludes that although the factors of catching-up can be very unique in countries at different levels of development, yet there are some factors without which catching-up is hardly feasible nowadays in any country.
References
Alcidi, C., Nunez Ferrer, J., Di Salvo, M. et al. (2019). Income Convergence in the EU: A tale of two speeds. Online: https://www.ceps.eu/cepspublications/income-convergence-eu-tale-twospeeds/, https://doi.org/10.1007/s10272-019-0783-6
Baumol, W. J. (1986). Productivity Growth, Convergence, and Welfare: What the Long-run Data Show. American Economic Review, Vol. 76. No. 5. pp. 1072–1085
Boffey, D. (2017). Netherlands and UK are biggest channels for corporate tax avoidance. The Guardian, Online: https://www.theguardian.com/world/2017/jul/25/netherlands-and-uk-are-biggestchannels-for-corporate-tax-avoidance
Breznits, D. (2011). Ideas, Structure, State Action and Economic Growth: Rethinking the Irish Miracle. Review of International Political Economy 19(1) https://doi.org/10.1080/09692290.2010.514260
Buchanan, M. (2017). Tax Havens Can Be Surprisingly Close to Home. Bloomberg View Online: https://www.bloomberg.com/opinion/articles/2017-04-11/tax-havens-can-be-surprisinglyclose-to-home
Coutinho, L., Turrini, A. (2020). Real Convergence Across the Euro Area. Intereconomics, Volume 55, Number 5, pp. 301–311, https://doi.org/10.1007/s10272-020-0920-2
Dharmapala, D., Hines Jr., J.R. (2006). Which Countries Become Tax Havens? NBER Working Paper No. 12802, December, https://doi.org/10.3386/w12802
Dufrenot, G., Sanon, G. (2014). Testing Real Convergence in the ECOWAS countries in Presence of Heterogeneous Long-Run Growths. CREDIT Research Paper No. 05/14, Centre for Research in Economic Development and International Trade, University of Nottingham
Dufrenot, G., Mignon, V., Naccache, T. (2009). The slow convergence of per capita income between the developing countries: „growth resistance” and sometimes “growth tragedy”. CREDIT Research Paper No. 09/03
Franks, J., Barkbu, B., Blavy, R., et al. (2010). Economic Convergence in the Euro Area: Coming Together or Drifting Apart? WP/18/10 IMF Working Papers, https://doi.org/10.5089/9781484338490.001
Gal Z. (2015). A penzugyi globalizacio es az eurozona penzugyi-monetaris integraciojanak terbeli korlatai. Pénzügyi Szemle, 2015/1
Gyuris F. (2017). A kinai gazdasagi csoda okai es korlatai. Földrajzi Közlemények, 141/3, 275–287. oldal
Hays, J. (2008). Economic history of Thailand: Post-war boom and the Thaksin and post-Thaksin years. Online: https://factsanddetails.com/southeastasia/ Thailand/sub5_8g/entry-3310.html
Hines Jr., J. R. (2010). Treasure Islands. Journal of Economic Perspectives. 4 (24), pp. 103–125, https://doi.org/10.1257/jep.24.4.103
del Hoyo, J. L., Dorrucci, E., Heinz, F. F. et al. (2017). Real convergence in the euro area: a longterm perspective. Occasional Paper Series No. 203/ December
Kauryha, A., Valdivieso, P. (2015). Economic convergence as natural evolutionary path. Online: https://www.revistaespacios.com/a15v36n05/15360516.html
Johnson, P., Papageorgiou, C. (2020). What Remains of Cross-Country Convergence? Journal of Economic Literature, Vol. 58, No. 1, pp. 75–129, https://doi.org/10.1257/jel.20181207
Kumar, S., Siddique, S. (2010). The Singapore success story: public-private alliance for investment attraction, CEPAL – Serie Comercio internacional, No. 99
Lucas, Jr., R. E. (1988). On the Mechanics of Economic Development. Journal of Monetary Economics 22, pp. 3–42, North-Holland, https://doi.org/10.1016/0304-3932(88)90168-7
Maddison, A. (2001). The World Economy: a Millennial Perspective, Paris. OECD, Development Studies Centre, https://doi.org/10.2307/20050348
Matkowski, Z., Prochniak, M., Rapacki, R. (2016). Real Income Convergence between Central Eastern and Western Europe: Past, Present, and Prospects. „Ekonomista”, nr. 6
Millar, H. (2017). „Is the U.K. Already the Kind of Tax Haven It Claims It Won’t Be?” Bloomberg News, 31, July, Online: https://www.bloomberg. com/news/articles/2017-07-31/is-the-u-k-alreadythe-kind-of-tax-haven-it-claims-it-won-t-be
North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Cambridge University Press, https://doi.org/10.1017/cbo9780511808678
Patel, D., Sandefur, J., Subramanian, A. (2021). The New Era of Unconditional Convergence. Ashoka University Economics Discussion Paper 54, February https://doi.org/10.1016/j.jdeveco.2021.102687
Pelle A., Vegh M. Z. (2019). Hogyan valtozott az euroovezet a kezdetek ota. Pénzügyi Szemle, 2019/1
Rama, M. (2019). Converge and European Value Chains: How Deep Integration Can Reignite Convergence in the EU. CID Research Fellow and Graduate Student Working Paper Series 116, Harvard University
Romer, P. M. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, Vol. 94, No. 5, pp. 1002–1037, https://doi.org/10.1086/261420
Solow, R. M. (1956). A Contribution to the Theory of Economic Growth. Quarterly Journal of Economic,s 70, pp 65–94, https://doi.org/10.2307/1884513
Szekely-Doby, A. (2017). A kinai fejlesztő allam kihivasai. Közgazdasági Szemle, LXIV. evf., junius, 630–649. oldal, https://doi.org/10.18414/ksz.2017.6.630
Tan, K. S., Bhaskaran, M. (2015). The role of the state in Singapore: Pragmatism in pursuit of growth. Singapore Economic Review. 60, (3), pp. 1–30
Vargha B. (2017). Adoalap-elvonasi tunetek? Pénzügyi Szemle, 2017/2
United Nations Development Programme: Human Development Report 2020. Online: http://hdr.undp.org/en/2020-report, https://doi.org/10.18356/978921005516
