Essay About Evaluative Study And European Convergence Index

An Evaluative Study for the Asean in Predicting Factors That Affect Gdp
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An evaluative study for the ASEAN in predicting factors that affect GDP per capita using four macroeconomic variables: inflation, exchange, interest and unemployment rates.        The evaluative study generally examines the possibility of achieving a stable, sustainable and efficient economy for the ASEAN through the course of an economic integration. Specifically, these ideals dwell on the feasibility and the attainability of adapting a single monetary unit or currency for the whole region. Furthermore, the European Convergence Index, a mutual agreement which led to the European Union and the currency called Euro (€) was taken into consideration in giving rise to the term, Asian Convergence Index which was meticulously analyzed with various variables. Given this, the Macro-economic factors such as inflation, exchange, interest and unemployment rates were utilized as they were derived from the European Convergence Criteria, Maastricht Criteria and Kabir and Salim Criteria. Nominal Growth Domestic Product (GDP per capita) was also incorporated as a proxy variable in several ASEAN countries with ample data and information since it represents the total market value of a country’s output within a given time period. Ultimately, it was discovered through a series of bivariate correlations, that as the GDP increases, the four macro – economic rates gradually change differently per country. Multiple regressions were also conducted which resulted to an alarming negative correlation of inflation and unemployment towards GDP. This generally implies that the increase of GDP is associated with the achievement of  the ASEAN Economic Integration while high inflation and unemployment rate may occur. Therefore, immediate actions of pushing through poses threats as the diverse countries may suffer due to high unemployment, devaluation and high prices of goods, and ultimately economic destabilization. Overall, ASEAN is not yet ready to have an integrated economy