t8rohman / absoluteconditional_convergence

Testing and comparing Absolute and Conditional Convergence economy between past and current period. Done in R environment.

Absolute Conditional Convergence

In this project, I tried to test and compare Absolute and Conditional Convergence economy between past and current period. It is the one of 5 questions that sensei gave to me for the Macroeconomics final exam. As the data set is not large, I conducted the analysis in R environment. There are 3 keys activities in this project:

1. Extracting, Transform, and Load data
2. Merging 3 data in one using SQL (mysqldf package)
3. Conducting and comparing regression
4. Plotting regression line in the x-y scatter plot

I discovered that the absolute convergence hypothesis no longer probably applies for the current period. We should consider conditional convergence, which states that economic convergence is also dependent on country similarities. Policymakers in emerging countries should consider improving education levels in order to achieve a better future development rate.