Income convergence within ASEAN, ASEAN+3: a panel unit root approach

This article aims to test the income convergence hypothesis in the Association of Southeast Asian Nations (ASEAN) region using new panel unit root tests. As the newer member states of ASEAN are gradually developing in order to enter the economic zone, it was found that the great majority of original members showed income convergence over a long time period of 50 years. However, when a 22-year period was explored to encompass these newer member states, only three countries were found to support the existence of a ‘catch-up’ effect. This testing method as applied to the ASEAN economic zone results in outcomes that vary from other examples, which can be explained by the diverse political histories of the member countries and their relatively recent reform processes.