Convergence Modelling in International Integration Associations

The article considers mathematical tools for modelling economic policy as a whole, as well as convergence in the field of labor, foreign economic activity, monetary and debt policy. Convergence was estimated using the sigma-convergence model, which characterizes the decrease in time spread in the levels of development of countries and regions, reflecting the negative relationship between economic growth rates and the initial level of development of countries and regions. The sigma-convergence was estimated by the coefficient of variation and by the dispersion-based model. To assess beta-convergence, we used the Barro and Sala-i-Martin models, as well as the Baumol, Solow-Svan, and Quadrado-Rour models. The use of this mathematical toolkit allows to explore the presence and speed of convergence before and after joining international integration associations. The proposed mathematical modelling tools are recommended to be used in order to analyze convergence processes, study the dynamics of convergence or divergence, and also to adjust the directions and methods of state and regional economic policies of countries included in the integration association.

Keywords

modelling; integration; economic policy; country; region; effect; sigma-convergence; beta-convergence.

References

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