International income convergence: Is Latin America actually different?

King, Alan; Ramlogan-Dobson, Carlyn

Abstract

When unit-root tests are used to test the income convergence hypothesis for individual OECD economies, their growth paths are usually found to be systematically related to that of the benchmark economy (typically, the US). However, more mixed evidence of such a relationship has been found for Latin American economies, suggesting their growth process is different from that of the developed world. Using recently developed Fourier-type tests, we find evidence that growth in almost all Latin American economies is actually systematically related to that of the US. However, the relative income level to which some have converged is quite low.

Citation

King, A., & Ramlogan-Dobson, C. (2015). International income convergence: Is Latin America actually different?. Economic modelling, 49, 212-222. https://doi.org/10.1016/j.econmod.2015.04.008

• Journal Article Type: Article
• Acceptance Date: Apr 26, 2015
• Online Publication Date: May 17, 2015
• Publication Date: 2015-09
• Deposit Date: May 15, 2019
• Journal: Economic Modelling
• Print ISSN: 0264-9993
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 49
• Pages: 212-222
• DOI: https://doi.org/10.1016/j.econmod.2015.04.008
• Keywords: Income convergence; Nonlinear trend; Nonlinear mean-reversion; Fourier function
• Public URL: https://hull-repository.worktribe.com/output/1788039
• Publisher URL: https://www.sciencedirect.com/science/article/pii/S0264999315001091?via%3Dihub