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Tests of the "Convergence Hypothesis": Some Further Results

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  • Cohen, Daniel

Abstract

The article presents new tests of the convergence hypothesis. It first analyzes the unconditional pattern of growth of human and physical capital (conventionally measured by an inventory method) and shows that these tests do support the hypothesis that domestic inputs of poor countries appear to be catching up with those of rich countries. On the other hand, when one analyzes the pattern of growth of physical capital and Solow residual, then one is led to reject the convergence theory. Building on this discrepancy, I demonstrate that the poor countries have failed to catch up with rich ones because the progress that they have achieved in educating their workers (which is evidenced in the convergence of domestic inputs) is not sufficient to compensate for their poor endowment in the knowledge on which the education of workers stands. Copyright 1996 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 1 (1996)
Issue (Month): 3 (September)
Pages: 351-61

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Handle: RePEc:kap:jecgro:v:1:y:1996:i:3:p:351-61

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Web page: http://www.springerlink.com/link.asp?id=102931

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Cited by:
  1. Toni Mora, 2008. "Factors conditioning the formation of European regional convergence clubs," The Annals of Regional Science, Springer, vol. 42(4), pages 911-927, December.
  2. Cohen, Daniel & Soto, Marcelo, 2002. "Why are Poor Countries Poor? A Message of Hope which Involves the Resolution of a Becker/Lucas Paradox," CEPR Discussion Papers 3528, C.E.P.R. Discussion Papers.
  3. Voxi Heinrich Amavilah, 2005. "Solow and the Native Americans: Technological Residuals and the Economic Performance of U.S. Native American Economies," Development and Comp Systems 0505008, EconWPA.
  4. Toni Mora, 2005. "Conditioning factors on regional European clubs - a distributional approach," ERSA conference papers ersa05p302, European Regional Science Association.
  5. Spruk, Rok, 2011. "Productivity and income convergence in transition: theory and evidence from Central Europe," MPRA Paper 33389, University Library of Munich, Germany.
  6. Voxi Heinrich S Amavilah, 2005. "INFRASTRUCTURAL v. SUPERSTRUCTURAL EFFECTS OF INSTITUTIONS ON INCOME DETERMINATION ACROSS U.S. NATIVE AMERICAN ECONOMIES," Development and Comp Systems 0505004, EconWPA.
  7. Dessus, Sebastien, 2001. "Human capital and growth : the recovered role of education systems," Policy Research Working Paper Series 2632, The World Bank.
  8. Voxi Heinrich Amavilah, 2004. "Apparent Solow- and Solow-like Technological Residuals and the Economic Performance of U.S. Native American Economies," Development and Comp Systems 0406004, EconWPA.
  9. Voxi Heinrich S Amavilah, 2004. "Economic Performance in a Cross-Section of U.S. Native American Economies," GE, Growth, Math methods 0405003, EconWPA.
  10. Amavilah, Voxi Heinrich, 2008. "Domestic resources, governance, global links, and the economic performance of Sub-Saharan Africa," MPRA Paper 11193, University Library of Munich, Germany.

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