Is OIC a Converging Club

Abstract

In this paper, economic convergence in selected OIC (36 countries) is studied. The convergence hypothesis is tested through three approaches: Beta convergence, Sigma convergence, and time series model. OLS is used for estimating the cross section model and cross variance is used to test the distributive model. For analyzing time series model, we used Augmented Dicky Fuller test. Beta convergence and Sigma convergence are approved by the sample. Analyzing time series model, we found that OIC include several clubs. Some go down and converge to the cross section mean, others go up and converge to the mean, and the third group diverges.
JEL Classifications: F12, F42, C22

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