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https://hdl.handle.net/10419/18673
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DC Field | Value | Language |
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dc.contributor.author | Pesaran, Mohammad Hashem | en |
dc.date.accessioned | 2009-01-28T15:52:04Z | - |
dc.date.available | 2009-01-28T15:52:04Z | - |
dc.date.issued | 2004 | - |
dc.identifier.uri | http://hdl.handle.net/10419/18673 | - |
dc.description.abstract | This paper proposes a pair-wise approach to testing for output convergence that considers allN(N-1)/2 possible pairs of log per capita output gaps across N economies. A generalprobabilistic definition of output convergence is also proposed, which suggests that all suchoutput gap pairs must be stationary with a constant mean. The approach is compatible withindividual output series having unit roots, does not involve the choice of a reference countryin computation of output gaps, and can be applied when N is large relative to T (the timedimension of the panel). The proposed test is applied to output series in the Penn WorldTables over 1950-2000, as well as to Maddion's historical series over 1870-2000. Overall, theresults do not support output convergence, and suggest that the findings of convergence clubsin the literature might be spurious. However, significant evidence of growth convergence isfound, a result which is reasonably robust to the choice of the sample period and countrygroupings. Non-convergence of log per capita outputs combined with growth convergencesuggests that while common technological progress seems to have been diffusing reasonablywidely across economies, there are nevertheless important country-specific factors (forexample, wars, famines, revolutions, regime and institutional changes) that render output gapshighly persistent, such that we can not be sure that the probability for the output gaps to liewithin a fixed range will be non-zero. | en |
dc.language.iso | eng | en |
dc.publisher | |aCenter for Economic Studies and ifo Institute (CESifo) |cMunich | en |
dc.relation.ispartofseries | |aCESifo Working Paper |x1308 | en |
dc.subject.jel | C32 | en |
dc.subject.jel | C33 | en |
dc.subject.jel | D90 | en |
dc.subject.jel | O47 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | economic growth | en |
dc.subject.keyword | panel data models | en |
dc.subject.keyword | common technological shocks | en |
dc.subject.keyword | convergence | en |
dc.subject.stw | Entwicklungskonvergenz | en |
dc.subject.stw | Sozialprodukt | en |
dc.subject.stw | Panel | en |
dc.subject.stw | Vergleich | en |
dc.subject.stw | Welt | en |
dc.title | A pair-wise approach to testing for output and growth convergence | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 477379818 | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
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