WHAT’S HAPPENING TO PER CAPITA GDP IN THE ASEAN COUNTRIES?. AN ANALYSIS OF

In this paper we have examined the issue of convergence of per capita GDP across 9 ASEAN countries during 1960-2001 using World Bank data. Empirical results failed to find evidence of s convergence, b convergence and conditional b (bc) convergence in ASEAN countries. The reasons for non-convergence of per capita GDP can be explained by low volume of intra-country trade, slow growth of merchandise exports and imports, and low levels of per capita income growth achieved by the individual countries. In addition, factors conducive to long run economic growth were absent in the ASEAN economies. This was further compounded by weak governance in some of the ASEAN countries. Further, non-convergence can be attributed to explanations provided by endogenous growth models. JEL Classification: C21, O1