Conversion Analysis with G7 and BRICS Countries for the Turkish Economy

In recent years, the difference in the level of welfare between developed and developing countries has been widening. The convergence hypothesis states that low-income countries will converge to high-income countries over time due to declining productivity of capital and diffusion of technology. The aim of this study is to test the convergence hypothesis for the Turkish economy with the G7 countries and BRICS countries. Per capita GDP values of all countries were used in the study. As a method, Lee-Strazicih unit root test with two breaks was applied. As a result of the tests, no convergence was found between Turkey and the G7 countries. It has been determined that the convergence hypothesis is valid between Turkey and the BRICS countries.