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International income convergence: Is Latin America actually different?

King, Alan; Ramlogan-Dobson, Carlyn

Authors

Alan King



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.

Journal Article Type Article
Publication Date 2015-09
Journal Economic Modelling
Print ISSN 0264-9993
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 49
Pages 212-222
APA6 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
DOI https://doi.org/10.1016/j.econmod.2015.04.008
Keywords Income convergence; Nonlinear trend; Nonlinear mean-reversion; Fourier function
Publisher URL https://www.sciencedirect.com/science/article/pii/S0264999315001091?via%3Dihub
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