Testing the convergence and the divergence in five Asian countries: from a GMM model to a new Machine Learning algorithm

Purpose The purpose of this paper is to empirically test the economic convergence that operate between five selected Asian countries (namely Thailand, Singapore, Malaysia, Philippines and Indonesia). In particular, it seeks investigate how increased integration has impacted inter-country income levels among founding members ASEAN. Design/methodology/approach A new Machine Learning (ML) approach applied along with a panel data analysis (GMM), application KOF Globalization Index. Findings Generalized Method Moments (GMM) results highlight endogenous growth theory seems be supported for countries, indicating evidence diverging forces resulting from unequal polarization dynamics. Overcoming technical issues raised by econometric approach, ML algorithm brings contrasted but interesting results. Using Index, authors confirm last phase globalization set conditions an sample members. Originality/value As matter fact, LSTM provided consistent supporting existence converging forces. highlighted effectiveness experiments we chose. high predictability authors’ model absence self-alignment in values showed be-tween economies.