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Stochastic convergence among European economies

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Author Info
Mauro Costantini () (University of Rome and ISAE)
Claudio Lupi () (University of Molise)

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Abstract

The aim of this paper is to test the stochastic convergence in real per capita GDP for 15 European countries using non-stationary panel data approaches over the period 1950-2003. Cross-sectional dependence is assumed due to the existence of strong linkages among European economies. However, tests derived under the assumption of cross-sectional independence are also carried out for completeness and comparison. We also split the whole sample into two sub-periods (1950-1976, 1977-2003) in order to take into account the effects of the first oil crisis (1973-1974) and to evaluate the robustness of the statistical analysis. Our results offer little support to the stochastic convergence hypothesis for the whole period, while suggest the presence of convergence in the first sub-period.

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File URL: http://economicsbulletin.vanderbilt.edu/2005/volume3/EB-05C30008A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 3 (2005)
Issue (Month): 38 ()
Pages: 1-17
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Handle: RePEc:ebl:ecbull:v:3:y:2005:i:38:p:1-17

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Related research
Keywords: Convergence Panel data Unit roots

Find related papers by JEL classification:
C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
O0 - Economic Development, Technological Change, and Growth - - General

References listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. KONYA, Laszlo & GUISAN, Maria-Carmen, 2008. "What Does The Human Development Index Tell Us About Convergence?," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(1), pages 19-40. [Downloadable!] (restricted)
  2. EL-MEFLEH, Muhannad A. & SHOTAR, Manhal M., 2008. "A Contribution To The Analysis Of The Economic Growth Of Qatar," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(1), pages 147-154. [Downloadable!] (restricted)
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