DSpace Repository

A Pair-Wise Approach to Testing for Output and Growth Convergence

Show simple item record

dc.creator Pesaran, Mohammad Hashem
dc.date 2004
dc.date.accessioned 2013-10-16T07:11:14Z
dc.date.available 2013-10-16T07:11:14Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/20579
dc.identifier ppn:472608371
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/20579
dc.description This paper proposes a pair-wise approach to testing for output convergence that considers all N(N-1)/2 possible pairs of log per capita output gaps across N economies. A general probabilistic definition of output convergence is also proposed, which suggests that all such output gap pairs must be stationary with a constant mean. The approach is compatible with individual output series having unit roots, does not involve the choice of a reference country in computation of output gaps, and can be applied when N is large relative to T (the time dimension of the panel). The proposed test is applied to output series in the Penn World Tables over 1950-2000, as well as to Maddion?s historical series over 1870-2000. Overall, the results do not support output convergence, and suggest that the findings of convergence clubs in the literature might be spurious. However, significant evidence of growth convergence is found, a result which is reasonably robust to the choice of the sample period and country groupings. Non-convergence of log per capita outputs combined with growth convergence suggests that while common technological progress seems to have been diffusing reasonably widely across economies, there are nevertheless important countryspecific factors (for example, wars, famines, revolutions, regime and institutional changes) that render output gaps highly persistent, such that we can not be sure that the probability for the outputs gaps to lie within a fixed range will be non-zero.
dc.language eng
dc.relation IZA Discussion paper series 1313
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject C33
dc.subject C32
dc.subject O47
dc.subject D90
dc.subject ddc:330
dc.subject economic growth
dc.subject panel data models
dc.subject common technological shocks
dc.subject convergence
dc.subject Entwicklungskonvergenz
dc.subject Sozialprodukt
dc.subject Panel
dc.subject Vergleich
dc.subject Welt
dc.title A Pair-Wise Approach to Testing for Output and Growth Convergence
dc.type doc-type:workingPaper
dc.coverage 1951-2000

Files in this item

Files Size Format View

There are no files associated with this item.

This item appears in the following Collection(s)

Show simple item record

Search DSpace

Advanced Search


My Account