• Badri Narayan Rath Indian Institute of Technology Hyderabad
Keywords: Total factor productivity; Convergence; Lagrange multiplier; ASEAN.


This paper examines the productivity convergence of the five original Association of
Southeast Asian Nations (ASEAN) countries, namely Indonesia, Malaysia, Philippines,
Singapore, and Thailand (ASEAN-5), using annual data spanning the period 1968
to 2014. Results from two-break Lagrange multiplier and residual augmented least
squares Lagrange multiplier unit root tests reveal strong evidence of productivity
convergence in case of ASEAN-5. Further, the results based on Phillips–Sul panel
club convergence also reveal productivity convergence. To check the robustness of
our finding, we use an alternative measure of total factor productivity and still find
evidence of convergence. We infer that such productivity improvements may help
ASEAN countries to achieve a higher pace of economic growth.


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How to Cite
Rath, B. (2019). DOES TOTAL FACTOR PRODUCTIVITY CONVERGE AMONG ASEAN COUNTRIES?. Buletin Ekonomi Moneter Dan Perbankan, 21, 477-494.