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Is there club convergence in Latin America?

King, Alan; Ramlogan-Dobson, Carlyn

Authors

Alan King

Abstract

Previous studies of the income convergence hypothesis for Latin American economies indicate that almost all are not systematically closing their income gap with developed nations. The few studies to consider whether they instead exhibit club convergence—i.e., convergence to a steady-state equilibrium significantly inferior to that of the developed economies—offer little convincing evidence of this either. We argue that this reflects the limitations of their measure of relative income (which includes their sample’s average income) and/or the assumptions underlying the discrete-break unit-root tests they employ. By avoiding these limitations, we obtain evidence of two Latin American convergence clubs.

Publication Date Nov 1, 2016
Journal Empirical economics
Print ISSN 0377-7332
Electronic ISSN 1435-8921
Publisher Springer Verlag
Peer Reviewed Peer Reviewed
Volume 51
Issue 3
Pages 1011-1031
Institution Citation King, A., & Ramlogan-Dobson, C. (2016). Is there club convergence in Latin America?. Empirical economics, 51(3), 1011-1031. https://doi.org/10.1007/s00181-015-1040-x
DOI https://doi.org/10.1007/s00181-015-1040-x
Keywords Per capita income, Club convergence, Structural change, Fourier function
Publisher URL http://link.springer.com/article/10.1007%2Fs00181-015-1040-x
Copyright Statement ©2017 University of Hull
Additional Information Authors' accepted manuscript of article published in Empirical economics, 2016, v.51, issue 3. The final publication is available at Springer via http://dx.doi.org/10.1007/s00181-015-1040-x

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