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Convergence or confusion? A study of world economic growth

Author

Listed:
  • Keunkwan Ryu

    (Seoul National University)

  • Yong Yoon

    (Chulalongkorn University)

Abstract

This paper takes a closer look at the typical growth convergence regression of Barro (1991), Mankiw, Romer and Weil (1992), Sala-i-Martin (1996), and others. By interpreting the two components of the regression coefï¬ cient separately, i.e. the correlation coefficient and the ratio of standard deviations, we distinguish between "time-series" convergence and "cross-section" convergence, and consequently the relationship between β− and σ−convergence. And, using data from the latest Penn World Table database (version 9.1), we investigate the convergence or the lack-of-convergence in samples of countries representing the “World†, OECD and Sub-Saharan Africa. The implications of this study for the neoclassical growth model are also discussed.

Suggested Citation

  • Keunkwan Ryu & Yong Yoon, 2020. "Convergence or confusion? A study of world economic growth," Economics Bulletin, AccessEcon, vol. 40(4), pages 2819-2827.
    • Handle: RePEc:ebl:ecbull:eb-19-00728
    as

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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Economic growth; convergence;

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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