The Impact of COVID-19 Pandemic on Economic Convergence Between Developed and Developing Nations

Authors

  • Lucile Sabas Department of Accounting, Economics and Finance, School of Business Administration, Andrews University, USA
  • Williams Kwasi Peprah Department of Accounting, Economics and Finance, School of Business Administration, Andrews University, USA
  • Carmelita Troy Department of Accounting, Economics and Finance, School of Business Administration, Andrews University, USA
  • Quentin Sahly Department of Accounting, Economics and Finance, School of Business Administration, Andrews University, USA

DOI:

https://doi.org/10.32479/ijefi.17698

Keywords:

Convergence Theory, Covid-19 Pandemic, Augmented Dickey-Fuller Test, Developing Countries, Developed Countries

Abstract

This study investigates convergence between developed and developing countries' GDP during the pre-COVID-19 era (1960–2019) and post-COVID-19 era (2020–2023) using World Bank data and the Augmented Dickey-Fuller (ADF) test. For the pre-COVID period, results show no significant convergence, with an ADF statistic of -1.78 and a p-value of 0.39, likely due to disparities in industrialization and governance. Similarly, post-COVID results (ADF statistic -1.2, p-value 0.67) also suggest no convergence, possibly exacerbated by pandemic-related challenges. The study highlights that structural barriers and the pandemic have hindered economic convergence.

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Published

2025-02-17

How to Cite

Sabas , L., Peprah, W. K., Troy, C., & Sahly, Q. (2025). The Impact of COVID-19 Pandemic on Economic Convergence Between Developed and Developing Nations. International Journal of Economics and Financial Issues, 15(2), 91–97. https://doi.org/10.32479/ijefi.17698

Issue

Vol. 15 No. 2 (2025)

Section

Articles
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