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The Social Capability Index and Income Convergence

Palacio, Andrés LU (2018) In Lund Papers in Economic History . Development Economics
Abstract
Domestic social capabilities are a set of national characteristics for understanding why some countries grow faster than others. Yet there is no clear agreement on the main characteristics of these capabilities and therefore they have been neglected in the income convergence debate. The paper presents an index for revisiting the role of social capabilities in this debate. A relatively socially advanced society is more likely to improve the prospects of income convergence. The index is restricted to 4 capabilities: diversify the economy (transformation), distribute the benefits of growth (inclusion), control price inflation (autonomy) and provide public goods (accountability). Using a sample of 27 countries from Africa, Asia and Latin... (More)
Domestic social capabilities are a set of national characteristics for understanding why some countries grow faster than others. Yet there is no clear agreement on the main characteristics of these capabilities and therefore they have been neglected in the income convergence debate. The paper presents an index for revisiting the role of social capabilities in this debate. A relatively socially advanced society is more likely to improve the prospects of income convergence. The index is restricted to 4 capabilities: diversify the economy (transformation), distribute the benefits of growth (inclusion), control price inflation (autonomy) and provide public goods (accountability). Using a sample of 27 countries from Africa, Asia and Latin America over the period 1990-2010, we show that this set of capabilities is related to income growth and to long run performance in manufacturing. The index confirms the consolidation of the East Asian tigers and the rise of China, but the laggard performance on India. Indonesia represents the median in the index, surrounded by Latin American countries like Venezuela and Brazil. In the African context, we see Mauritius standing further away from Ethiopia, South Africa and Nigeria. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working paper/Preprint
publication status
published
subject
keywords
catching up, income gap, social capabilities, ranking, developing countries, O470
in
Lund Papers in Economic History . Development Economics
issue
2018:184
pages
25 pages
language
English
LU publication?
yes
id
ba2b7772-8583-40f0-9abf-be88fb6b7cbf
date added to LUP
2018-11-09 10:16:24
date last changed
2018-11-21 21:43:07
@misc{ba2b7772-8583-40f0-9abf-be88fb6b7cbf,
  abstract     = {Domestic social capabilities are a set of national characteristics for understanding why some countries grow faster than others. Yet there is no clear agreement on the main characteristics of these capabilities and therefore they have been neglected in the income convergence debate. The paper presents an index for revisiting the role of social capabilities in this debate. A relatively socially advanced society is more likely to improve the prospects of income convergence. The index is restricted to 4 capabilities: diversify the economy (transformation), distribute the benefits of growth (inclusion), control price inflation (autonomy) and provide public goods (accountability). Using a sample of 27 countries from Africa, Asia and Latin America over the period 1990-2010, we show that this set of capabilities is related to income growth and to long run performance in manufacturing. The index confirms the consolidation of the East Asian tigers and the rise of China, but the laggard performance on India. Indonesia represents the median in the index, surrounded by Latin American countries like Venezuela and Brazil. In the African context, we see Mauritius standing further away from Ethiopia, South Africa and Nigeria.},
  author       = {Palacio, Andrés},
  language     = {eng},
  note         = {Working Paper},
  number       = {2018:184},
  series       = {Lund Papers in Economic History . Development Economics},
  title        = {The Social Capability Index and Income Convergence},
  url          = {https://lup.lub.lu.se/search/files/54142818/LUP_184.pdf},
  year         = {2018},
}