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International output convergence: evidence from an autocorrelation function approach

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  • Giovanni Caggiano

    (Department of Economics, University of Padua, Padua, Italy)

  • Leone Leonida

Abstract

This paper uses an autocorrelation function (ACF) approach to develop a new testing procedure for international output convergence. We define convergence in terms of sample ACFs of detrended output per capita, and construct an inference set-up based on resampling and subsampling techniques for dependent data. Using per capita GDP for 15 OECD countries observed over a century, we find that the hypothesis of conditional convergence is unsupported; that, the USA apart, the linearized neoclassical growth model fails to replicate the transitional dynamics of OECD economies; and that these economies do not behave like a club. Copyright © 2008 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jae.1038
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 24 (2009)
Issue (Month): 1 ()
Pages: 139-162

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Handle: RePEc:jae:japmet:v:24:y:2009:i:1:p:139-162

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Citations

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Cited by:
  1. N. Garrido & F. Mureddu, 2011. "Italian economic dualism and convergence clubs at regional level," Working Paper CRENoS 201116, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  2. Le Pen, Yannick, 2011. "A pair-wise approach to output convergence between European regions," Economic Modelling, Elsevier, vol. 28(3), pages 955-964, May.
  3. Caggiano, Giovanni & Castelnuovo, Efrem, 2011. "On the dynamics of international inflation," Economics Letters, Elsevier, vol. 112(2), pages 189-191, August.
  4. Giovanni Caggiano & Efrem Castelnuovo, 2008. "Long Memory and Non-Linearities in International Inflation," "Marco Fanno" Working Papers 0076, Dipartimento di Scienze Economiche "Marco Fanno".
  5. N. Garrido & F. Mureddu, 2012. "Club performance dynamics at Italian regional level," Working Paper CRENoS 201203, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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