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This paper investigates the per-capita output club convergence in case of 120 countries for the period 1995–2015. Further, we disaggregate per-capita output into three broad sectors such as agriculture, industry, and service and investigate the convergence hypothesis.

The paper tests this hypothesis using the Phillips and Sul panel club convergence technique.

Our findings are as follows: (1) our results indicate the evidence of output divergence for the full sample; (2) when countries are divided into different clubs, the results exhibit the sign of per capita output club convergence both for aggregate and three major sectors. Further, this study confirms that industry's per capita output is the main driver for aggregate per-capita output club convergence in case of club 1. For club 2, agriculture's per capita output is a primary source for aggregate per capita output club convergence. Likewise, in the case of clubs 3 and 4, we find the service sector's per capita output is the main component for aggregate per-capita output club convergence; (3) both the service and industry sectors are major drivers for aggregate per-capita output club convergence.

This study suggests to the policymaker that sector-specific policies need to be adopted to boost the per-capita output growth by improving the performance of each of the sectors across the countries.

Notwithstanding, there are many studies that examine the output convergence using a notion of beta and sigma convergence, but studies regarding per capita output club convergence both at the aggregate and sectoral level are scanty.

The aggregate index and per capita index have different meanings for some countries or regions. CO₂ emissions per capita matters for China because of its huge population. Therefore, this study aims to deepen the understanding of Kuznets curve from the perspective of CO₂ emissions per capita. In this study, mathematical formulas will be derived and verified.

First, this study verified the existing problems with the environmental Kuznets curve (EKC) through multiple regression. Second, this study developed a theoretical derivation with the Solow model and balanced growth and explained the underlying principles of the EKC’s shape. Finally, this study quantitatively analyzed the influencing factors.

The CO₂ emission per capita is related to the per capita GDP, nonfossil energy and total factor productivity (TFP). Empirical results support the EKC hypothesis. When the proportion of nonfossil and TFP increase by 1%, the per capita CO₂ decrease by 0.041 t and 1.79 t, respectively. The growth rate of CO₂ emissions per capita is determined by the difference between the growth rate of output per capita and the sum of efficiency and structural growth rates. To achieve the CO₂ emission intensity target and economic growth target, the growth rate of per capita CO₂ emissions must fall within the range of [−0.92%, 6.1%].

Inspired by the EKC and balanced growth, this study investigated the relationships between China’s environmental variables (empirical analysis) and developed a theoretical background (macro-theoretical derivation) through formula-based derivation, the results of which are universally valuable and provide policymakers with a newly integrated view of emission reduction and balanced development to address the challenges associated with climate change caused by energy.

This paper reviews one of the crucial issues in the recent growth literature concerning the hypothesis of cross country convergence of levels and growth rates of income per capita implied by the neo‐classical growth model, both in the Solow‐Swan and Rampsey‐Cass‐Koopmans versions. The alternative endogenous growth models, consistent with permanent income inequality, are considered. Convergence to a common income level versus divergence is discussed from a theoretical point of view. Then, empirical tests of the convergence property are presented. What emerges is that Barro type regressions and their findings about “conditional” convergence are questionable and cannot be used to give a definitive response on this issue.

With China’s economic growth slowing down and the growth rate of fiscal revenue decreasing, the pressure on local government debts is further increasing. Under this background, it is of great significance to clarify the relation between local government debts and China’s economic growth in order to give full play to the positive role of local debts in stabling growth. The paper aims to discuss this issue.

Therefore, this paper explores the impact of Chinese local government debt on economic growth from theoretical and empirical aspects, respectively, and compares the regional differences between different debts and economic growth dynamics.

In the theoretical model part, this paper constructs a three-sector dynamic game model, under the two circumstances of whether local government is subject to debt constraints, and examines the relation between local government debt and economic growth and other variables through numerical simulation. Research shows that when the government is not constrained by debt, there is an inverted “U” relation between government debt and economic growth. When the government is constrained by debt, the economic growth rate gradually decreases as the government debt increases.

In the theoretical analysis part, this paper tries to estimate the amount of local debts under different calibers and examines the impact of different types of local government debts on China’s economic growth and their regional differences. The results show that excessive accumulation of government hidden debts in the eastern region is not conducive to economic growth, while explicit debts in the central and western regions significantly contribute to local economic growth. The results of empirical analysis are basically consistent with the predictions of the theoretical model.

The impact of fiscal decentralization on equalization between regions has received significant attention but there has been much less research of the impact of decentralization on equalization within regions. Theory suggests that the tradeoff between local fiscal autonomy and equalization ought to be most pronounced at the sub-region level where rural-urban disparities in the level of development are substantial. This paper is an empirical analysis of the impact of fiscal decentralization on equalization within one Russian region, Leningrad (State). We show that the regional government uses a mixture of fiscal instruments to strike a balance between giving more budgetary autonomy to local governments and eliminating the disparities among them. We also develop a method for studying this tradeoff between decentralization and equalization when only limited data are available. Finally, we argue and demonstrate that without a detailed understanding of the institutional arrangement for intergovernmental fiscal relations, one cannot evaluate the equalization or decentralization implications.

Proposes an empirical analysis of regional convergence in Canada based on the growth model of Barro et al. In an open economy with perfect capital mobility, if domestic residents cannot borrow abroad with human capital as collateral, the dynamics of human capital accumulation is the driving force of per capita income growth. Empirical results indicate that, as predicted by the theoretical model, various indicators of the stock of human capital did converge at the same speed as per capita income during the 1951‐1996 period. A substantial part of the relative growth of per capita income indicators across Canadian provinces since the early 1950s could be explained by the convergence process of human capital indicators based on the percentage of the population, both sexes and males, who have at least a university degree. The estimates of the human capital share in national income based on those indicators are in the neighbourhood of 0.5, a number consistent with other measures of the implicit income share of human capital. The convergence speed of per capita income at the regional level might have been two to three times faster, if all persons had invested in education at the same rate as the young.

The purpose of this study is to investigate the synergy between sectoral output, energy use and CO₂ emission with other factors for a panel of South Asian economies including Afghanistan, Bangladesh, Bhutan, India, Pakistan, Maldives, Nepal and Sri Lanka.

The analysis is done using annual panel data from 1980–2019 using dynamic ordinary least squares (DOLS), fully modified OLS (FMOLS) and Toda-Yamamoto techniques.

Empirical findings reveal the existence of a statistically significant long-run cointegrating relationship between energy use, sectoral output such as agricultural, industry and service gross domestic product (GDP), globalization, urbanization and CO₂ emission. DOLS and FMOLS result posits that in the case of the South Asian region agriculture GDP does not contribute to increasing CO₂ emission while service and industrial GDP is responsible for increasing CO₂ emission along with urban population, energy use and to some extent globalization. More remarkably, the contribution of the service GDP is greater than the other two sectoral outputs in increasing CO₂ emission with a feedback hypothesis.

As CO₂ emission is a global phenomenon with a cross-boundary effect, these empirical findings might contribute to formulating implementable energy and environmental policies to sustain growth, as well as to protect the environment in the regional context.

The study contributes to the literature by providing an empirical investigation of South Asia incorporating the contribution of sectoral output to understand the potential contribution of each sector on energy and emission. This is the first study on the South Asian context from the perspective of sectoral output, energy and emission.

With the growth of income at the global level, the World Bank data show that there are rising levels of income disparity across countries, groups, regions and within the countries. This fact otherwise hints at the inter-country divergence in incomes, particularly between the developed and developing countries of the world. This chapter, therefore, attempts to examine the convergence or divergence in credit, GDP and HDI across the 10 selected countries for the period of 1990–2019 applying the neoclassical growth approach and the time series approach. The results of the exercise in line with the neoclassical theories on absolute convergence and sigma convergence show that the countries are unquestionably converging in GDP and HDI with mixed results in case of credit. The results of convergence in GDP and HDI in all the countries and their developed and developing counterparts provide a possible explanation as to why the cross countries’ income inequalities as well as world inequality in income and development are reducing over time. On the other hand, the results of the time series approach display that credit and HDI are converging in both absolute and conditional terms but the countries are converging in conditional terms only for GDP. Thus, the claims of the World Bank are not valid for the selected countries in the chapter, rather, they can be verified by taking other countries and groups into consideration.

The objective of this study is to examine the long-run relationship between workers' remittances and economic growth in Sri Lanka using time series data spanning 1975–2021.

This study employed both exploratory data analysis (EDA) and inferential data analysis (IDA) tools. EDA includes the scatter plots, confidence ellipse with Kernel fit, whereas IDA covers unit root test, the autoregressive distributed lag (ARDL) bounds technique, the Granger's causality test, and impulse response function (IRF) analysis.

EDA confirms that workers' remittances have a positive relationship with per-capita gross domestic product (GDP). All variables used in this study are I(1). This study is exhibited that workers' remittances have a positive long-run relationship with per-capita GDP. The estimated coefficient of the error correction term shows that the dependent variable moves towards the long-run equilibrium path. Workers' remittances have a short-run and long-run causal relationship with per-capita GDP. The IRF analysis indicates that a one standard deviation shock to workers' remittances has initially an immediate significant positive impact on economic growth.

This study provides insights into workers' remittances in economic growth in Sri Lanka. Further, the findings of this study also provide evidence that workers' remittances increase economic growth.

Using ARDL bounds test, Granger's Causality test and IRF analysis for examining the relationship between workers' remittances and economic growth are the originality of this study.