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The Convergence Hypothesis: History, Theory, and Evidence

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  • Farhad Rassekh

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    Abstract

    The hypothesis that per capita output converges across economies over time represents one of the oldest controversies in economics. This essay surveys the history and development of the hypothesis, focusing particularly on its vast literature since the mid-1980s. A summary of empirical analyses, econometric issues, and various tests of the convergence hypothesis are also presented. Moreover, the essay analyzes the implications of the hypothesis for economic growth, especially as it relates to underdeveloped economies. Copyright Kluwer Academic Publishers 1998

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    File URL: http://hdl.handle.net/10.1023/A:1008279323832
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    Bibliographic Info

    Article provided by Springer in its journal Open Economies Review.

    Volume (Year): 9 (1998)
    Issue (Month): 1 (January)
    Pages: 85-105

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    Handle: RePEc:kap:openec:v:9:y:1998:i:1:p:85-105

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    Web page: http://www.springerlink.com/link.asp?id=100323

    Related research

    Keywords: convergence; technology transfer; neoclassical growth model; globalization; income divergence;

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    Cited by:
    1. Chowdhury, Khorshed, 2004. "Convergence of Per Capita GDP Across SAARC Countries," Economics Working Papers wp04-07, School of Economics, University of Wollongong, NSW, Australia.
    2. DOBSON, Steve & RAMLOGAN, Carlyn & STROBL, Eric, 2003. "Why do rates of convergence differ ? A meta-regression analysis," CORE Discussion Papers 2003020, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Niclas Andrén & Lars Oxelheim, 2011. "Exchange rate regime shift and price patterns," International Journal of Managerial Finance, Emerald Group Publishing, vol. 7(2), pages 153-178, April.
    4. Rassekh, Farhad & Panik, Michael J. & Kolluri, Bharat R., 2001. "A test of the convergence hypothesis: the OECD experience, 1950-1990," International Review of Economics & Finance, Elsevier, vol. 10(2), pages 147-157.
    5. Tunali, Çiǧdem Börke & Yilanci, Veli, 2010. "Are per capita incomes of MENA countries converging or diverging?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(21), pages 4855-4862.
    6. Andrén, Niclas & Oxelheim, Lars, 2006. "Producer Prices in the Transition to a Common Currency," Working Paper Series 668, Research Institute of Industrial Economics.
    7. Kalin Hristov & Rossen Rozenov, 2009. "Financial Convergence in the New EU Member States," Working Paper / FINESS 1.2, DIW Berlin, German Institute for Economic Research.
    8. Chowdhury, Khorshed & Mallik, Girijasankar, 2007. "SPair-Wise Output Convergence in East Asia and the Pacific: An Application of Stochastic Unit Root Test," Economics Working Papers wp07-07, School of Economics, University of Wollongong, NSW, Australia.
    9. Chowdhury, K, 2005. "What´s Happening to Per Capita Gdp in the ASEAN Countries?. An Analysis of Convergence, 1960-2001," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(3).
    10. Park, Donghyun, 2003. "An empirical examination of income convergence in the Asia-Pacific region," Journal of Asian Economics, Elsevier, vol. 14(3), pages 497-502, June.

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