Download (28Mb) - LSE Theses Online

Table 6.5 Subséquent convergence or divergence within the groups (excluding
Cyprus)? Coefficients of variation for selected indicators 1981-90.
Micro
Economies
More
Developed
Mediterranean
Regional
Sub-Group
1/. GDP per capita in 1989 0.241 0.299 0.133
2/. Agriculture as a % of GDP in 1990 0.889 0.670 0.552
3/. Industry as a % of GDP in 1990 0.456 0.147 0.182
4/. Services as a % of GDP in 1990 0.152 0.107 0.084
5/. % growth in per capita GDP 1981-90* 1.755 1.122 1.469
6/. Average investment as a % of GDP 1981-90* 0.388 0.167 0.181
7/. Total gross primary & secondary enrolment ratio in 1990. 0.071 0.074 0.067
8/. Openness; X & M as a % of GDP 1981-90* 0.287 0.583 0.613
9/. Govt share of GDP (%) in 1990** 0.249 0.345 0.192
Micro Economies: Barbados, Fiji, Malta, Mauritius, Trinidad & Tobago.
More Developed Mediterranean: Greece, Israel, Malta, Portugal, Turkey, Yugoslavia.
Regional Sub-Group: Greece, Malta, Portugal, Yugoslavia.
Notes:
*1981-90 Maltese and Barbadian averages derived from 1981-89 and their 1990 Govt shares of GDP derive from 1989.
Sources:
Variables 1,5,6,8 & 9, Summers & Heston, "Penn World Tables (PWT) version 5.6"; Variables 2-4, UN, 1992 Yearbook of National
Income Accounts. NY ; Variable 7, UNESCO, World Education Report. 1991, 1993, 1995. Paris.
Table 6.5 shows the relative economic position of the peer économies (again
without the inclusion of Cypriot data) in the developmental indicators selected
earlier. Between the periods of analysis used in Table 6.3 and 6.4 there was
convergence across the spectrum of indicators, particularly the policy related
indicators. Whilst most of the selected indicators continue their convergence in the
1981-90 period, the performance indicator diverges significantly from the 1964-80
data (Table 6.4) by an average of over 330% for the peer économies as a whole. In
some ways this may be a necessary divergence, for per capita incomes have
generally converged significantly: most dramatically from a coefficient of variation
in 1980 of 0.584 in the Micro Economies, to 0.241 by 1989. Convergence is
maintained moreover in nearly 70% of the policy related indicators after 1980. If
"adjustment" to "crisis" 57 was occurring in some of these économies, then this was
convergence in the right direction, with countries attempting more market friendly,
long-term growth oriented policies. So whilst the main tool for bench-marking a
single Cypriot economy's performance into the 1990s is likely to contain a greater
spread of possibilities for économies with similar backgrounds and policy
51 ibid.
333