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dc.contributor.authorPesaran, Mohammad Hashemen_US
dc.coverage.temporal1951-2000en_US
dc.date.accessioned2009-01-28T15:52:04Z-
dc.date.available2009-01-28T15:52:04Z-
dc.date.issued2004en_US
dc.identifier.urihttp://hdl.handle.net/10419/18673-
dc.description.abstractThis 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 country-specific 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 output gaps to lie within a fixed range will be non-zero.en_US
dc.language.isoengen_US
dc.relation.ispartofseriesCESifo working papers 1308en_US
dc.subject.jelC32en_US
dc.subject.jelC33en_US
dc.subject.jelD90en_US
dc.subject.jelO47en_US
dc.subject.ddc330en_US
dc.subject.keywordeconomic growthen_US
dc.subject.keywordpanel data modelsen_US
dc.subject.keywordcommon technological shocksen_US
dc.subject.keywordconvergenceen_US
dc.subject.stwEntwicklungskonvergenzen_US
dc.subject.stwSozialprodukten_US
dc.subject.stwPanelen_US
dc.subject.stwVergleichen_US
dc.subject.stwWelten_US
dc.titleA pair-wise approach to testing for output and growth convergenceen_US
dc.typeWorking Paperen_US
dc.identifier.ppn477379818en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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