Economic Transition and Growth Dynamics in Asia: Harmony or Discord?

This paper studies whether the economic transitional and growth dynamic experiences of Asian economies are in harmony or discord so as to serve as a catalyst for, or a hindrance to, fostering regional economic cooperation and integration. Empirical evidence is derived from the application of a nonlinear time-varying factor convergence approach in conjunction with nonparametric distribution dynamics techniques. Results are in favor of growth convergence, but not level convergence, among the economies along their transition dynamic growth paths, and provide insights on issues that have significant bearing on the prospect of deepening regional economic cooperation and integration.