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New evidence on long-run output convergence among Latin American countries

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Abstract

This study assesses long-run real per capita output convergence among selected Latin American countries. The empirical investigation, however, is based on an alternative approach. Strong convergence is determined on the basis of the first largest principal component, based on income differences with respect to a chosen base country, being stationary. The qualitative outcome of the test is invariant to the choice of base country and, compared to alternative multivariate tests for long-run convergence, this methodology places less demands on limited data sets. Using annual data for the period 1960-2000, strong convergence is confirmed for the Central American Common Market. However, an amended version of the test confirms weaker long-run convergence in the case of the Latin American Integration Association countries.

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Bibliographic Info

Article provided by Universidad del CEMA in its journal Journal of Applied Economics.

Volume (Year): VIII (2005)
Issue (Month): (November)
Pages: 299-319

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Handle: RePEc:cem:jaecon:v:8:y:2005:n:2:p:299-319

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Keywords: output convergence; Latin America; common trends;

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References

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Citations

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Cited by:
  1. FE, Doukouré Charles, 2010. "Réduction de Droits de Douane et Convergence Réelle dans l'UEMOA
    [Tariffs Reduction and Real Convergence in WAEMU]
    ," MPRA Paper 26763, University Library of Munich, Germany.
  2. Paola Barrientos, 2007. "Theory, History and Evidence of Economic Convergence in Latin America," Development Research Working Paper Series, Institute for Advanced Development Studies 13/2007, Institute for Advanced Development Studies.
  3. Barrientos Quiroga, Paola Andrea, 2013. "Convergence Clubs determined by Economic History in Latin America," MPRA Paper 50191, University Library of Munich, Germany.

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