چکیده:
One of the fundamental questions facing economic theories is whether it is possible for the income gap between rich and poor countries to decrease? This question is related to one of the oldest and most controversial topics in economics, namely the income convergence hypothesis. This subject has been predicted by economic growth models as well as the Factor Price Equalization (FPE) theorem. The neoclassical growth model, within its standard framework of assumptions—particularly the diminishing returns to capital—predicts that less developed countries grow at a faster rate and are able to reduce the income gap between themselves and developed countries. Also, based on the Factor Price Equalization theorem, free trade leads to the equalization of factor prices and consequently results in per capita income equality. Furthermore, within the framework of endogenous growth models, trade can accelerate growth by increasing technology transfer and diffusion and promoting innovation. Few studies have been conducted on the role of international trade in income convergence. According to some studies, lower-income countries benefit more from trade than higher-income countries. Therefore, free trade leads to income convergence, while according to other studies, free trade increases the income gap between wealthy and poor countries. In total, a definitive conclusion regarding the theoretical and empirical effect of the degree of trade openness on income convergence has not been reached. The present article, by employing the convergence-growth model and using the powerful panel technique, examines the effect of the degree of trade openness on the speed of income convergence of D-8 member countries during the period (1975-2004). The research results indicate a positive and significant effect of the degree of trade openness on the speed of convergence among the D-8 group countries. Based on the results of the present article, it seems that D-8 countries can reduce the income gap among themselves by developing mutual trade. Also, based on the results of the present article, human and physical capital have a positive and significant effect on the economic growth of the studied countries.
خلاصه ماشینی:
The present article, by employing the convergence-growth model and using the powerful panel technique, examines the effect of the degree of trade openness on the speed of income convergence of D-8 member countries during the period (1975-2004).
Given that the theoretical and empirical effect of trade openness on income convergence is completely (1)- Sun Saharan (2)- Income convergence hypotheesis (3)- Abramovitz and David (4)- Solow and Swan (5)- In this relationship, it is assumed that all economies have the same technology; in other words, this model considers a common international production function for all countries, but their stocks of production factors are different at the beginning.
(6)- Factor Price Equalization(FPF) (7)- Heckscher-Ohlon-Samuelson(HOS) is not specified, and due to the potential importance of economic integration1, the D8 group2, the present article, using the panel method, has addressed testing the effect of the degree of trade openness on the speed of convergence of the member countries of this group during the period (1975-2004).
3 Mankiw, Romer, and Weil4 (1992), by including human capital in the Solow-Swan model, obtained the per capita income equation in the steady state or stable5 state as follows:6 (1)(Refer to the page image) (1)- Economic Integration (2)- Developing8(D8) (3)- Despite this, in empirical research, the relationship between free trade and economic growth has been examined based on the Solow-Swan growth model.
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