—This study mainly tests the role of demographic and Maastricht Criteria (MC) variables using various approaches to analyze comparatively the difference of productivity and unemployment convergence between developed economic integration (Eurozone) with developing one (Association of Southeast Asian Nation or ASEAN) a decade before and after the Euro introduced. Employing β convergence approach with panel data analysis, group variables played important role in both areas. The result confirmed the existence of unconditional productivity convergence in the both zones. When the equation controlled by other variables the magnitude in ASEAN was higher in all estimation showing the catch-up process taking place in ASEAN. The degree of explanation of the estimate convergence improve higher and also the degree of convergence when the conditioning factors were MC variables. Unconditional and conditional unemployment convergence took place in both regions. Better condition and higher speed of convergence in ASEAN was supported by descriptive Fig. and decomposition approach. The lesson learned from Eurozone as ex-ante and ex-post process was relevant with ASEAN intention to implement fully ASEAN Economic Community (AEC) by 2015.
—ASEAN, convergence, maastricht criteria, the eurozone.
Z. M. and M. I. are with School for International Development and Cooperation (IDEC), Hiroshima University 1-5-1 Kagamiyama, Higashi-Hiroshima 739-8529, Japan (e-mail: firstname.lastname@example.org; email@example.com).
Cite:Zaenal Mutaqin and Masaru Ichihashi, "Productivity and Unemployment Convergence in the Eurozone and ASEAN: A Comparative Study Based on Demographic and Maastricht Criteria Roles," International Journal of Trade, Economics and Finance vol.3, no.6, pp. 450-457, 2012.