The Effect of the Convergence of Sustainable Competitiveness on the Convergence of per capita Income

Shahabadi, Abolfazl; Torkamani, Maede

doi:10.22059/jte.2025.385308.1008949

The Effect of the Convergence of Sustainable Competitiveness on the Convergence of per capita Income

Document Type : Research Paper

Authors

Department of Economics, Faculty of Economics and Social Science, University of Alzahra, Tehran, Iran.

10.22059/jte.2025.385308.1008949

Abstract

Economic growth is a crucial indicator of a country's development and plays a significant role in its integration into global economic exchanges and its bargaining power in international trade. This study investigates the effect of sustainable competitiveness convergence on per capita income convergence among the top 50 science-producing countries between 2014 and 2023, using the ordinary least squares (OLS) method. The findings reveal a positive and significant relationship between the convergence of natural capital, intellectual capital, resource efficiency, and social capital, and the convergence of per capita income. Governments have a dual responsibility: they must direct resources toward wealth generation while also converting non-renewable natural resources into renewable ones to achieve sustainable growth and development. Additionally, by fostering and motivating human capital, governments can enhance innovation and close the technology gap with leading countries in sustainable competitiveness. Two estimation cases were analyzed. The first case examined the interactive effect of governance on natural capital, while the second focused on the interactive impact of governance on intellectual capital. In both instances, these interactive effects were found to have a positive and significant influence on per capita income convergence. Given the critical importance of economic growth and per capita income, policymakers are encouraged to create a conducive environment for attracting intellectual capital into production activities by developing new markets for production factors. Moreover, it is expected that leaders will enhance the competitiveness index, particularly in terms of social capital, and facilitate economic growth by improving people’s livelihood security and well-being, promoting accountability and responsibility, and striving for equal opportunities.

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Main Subjects

References

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