Energy Productivity Convergence in Asian Countries: A Spatial Panel Data Approach

The main purpose of this paper is to examine the convergence of energy productivity for 35 Asian countries over the period 1993–2010. These 35 countries are divided into five different geographical regions, namely, South East Asia, South Asia, North East Asia, North Asia and West Asia. We first use the sigma-convergence approach to investigate the disparity of energy productivity over time and find weak evidence of sigma-convergence process in energy productivity for all sample countries and mixed evidence for sub-sample countries. We then estimate the beta-convergence model by using the spatial panel data approach and find an existence of beta-convergence process in energy productivity for the whole set of sample countries and North East Asia. Moreover, we find mixed evidence of beta-convergence process in energy productivity for South East Asia, North Asia and West Asia. In South Asia, we find strong evidence of divergence process in energy productivity over the study period.

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