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Testing for output convergence: a re-examination

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Author Info
Yin-Wong Cheung
Antonio Garcia Pascual

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Abstract

This paper investigates output convergence for the G7 countries using panel time-series techniques. We consider both the null hypotheses of no convergence and convergence. It is shown that inferences on output convergence depend on which one of the two null hypotheses is considered. Further, the no convergence results reported in previous studies using the time-series definition may be attributed to the low power of the test procedures being used. Our results also highlight some potential problems on interpreting results from some typical panel unit root and stationarity tests. Copyright 2004, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 56 (2004)
Issue (Month): 1 (January)
Pages: 45-63
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Handle: RePEc:oup:oxecpp:v:56:y:2004:i:1:p:45-63

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References listed on IDEAS
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.:
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  30. Andrew Levin & Chien-Fu Lin, 1992. "Unit Root Tests in Panel Data: Asymptotic and Finite-Sample Properties," University of California at San Diego, Economics Working Paper Series 92-23, Department of Economics, UC San Diego. [Downloadable!]
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  33. Li, Qing & Papell, David, 1999. "Convergence of international output Time series evidence for 16 OECD countries," International Review of Economics & Finance, Elsevier, vol. 8(3), pages 267-280, September. [Downloadable!] (restricted)
Full references

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. Dimitris , Chrsitopoulos & Miguel , Leon-Ledesma, 2009. "International Output Convergence, Breaks, and Asymmetric Adjustment," MPRA Paper 14566, University Library of Munich, Germany. [Downloadable!]
  2. Hans-Werner Sinn & Frank Westermann, 2000. "Two Mezzogiornos," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  3. Gilles Dufrénot & Valérie Mignon & Théo Naccache, . "The slow convergence of per capita income between the developing countries: “growth resistance” and sometimes “growth tragedy”," Discussion Papers 09/03, University of Nottingham, CREDIT. [Downloadable!]
  4. Aslan, Alper, 2008. "Türkiye’de Suç Oranları Sürekliliğinin Analizi," MPRA Paper 10610, University Library of Munich, Germany. [Downloadable!]
  5. Funke, Michael & Niebuhr, Annekatrin, 2001. "Threshold Effects and Regional Economic Growth - Evidence from West Germany," Discussion Paper Series 26141, Hamburg Institute of International Economics. [Downloadable!]
    Other versions:
  6. Cristina Brasili & Luciano Gutierrez, 2004. "Regional convergence across European Union," Development and Comp Systems 0402002, EconWPA. [Downloadable!]
  7. Jönsson, Kristian, 2004. "Testing for Stationarity in Panel Data Models when Disturbances are Cross-Sectionally Correlated," Working Papers 2004:17, Lund University, Department of Economics, revised 26 Nov 2004. [Downloadable!]
  8. Brasili, Cristina & Fanfani, Roberto & Gutierrez, Luciano, 2007. "Convergence in the Agricultural Incomes: a Comparison between the US and EU," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9397, European Association of Agricultural Economists. [Downloadable!]
    Other versions:
  9. Roberto Duncan & J. Rodrigo Fuentes, 2005. "Convergencia Regional en Chile: Nuevos Tests, Viejos Resultados," Working Papers Central Bank of Chile 313, Central Bank of Chile. [Downloadable!]
  10. Mark J.Holmes, 2006. "Regime-Dependent output convergence in Latin America," Estudios de Economia, University of Chile, Department of Economics, vol. 33(1 Year 20), pages 65-81, June. [Downloadable!]
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