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Income convergence: fresh evidence from the Nordic countries

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Venus Khim-Sen Liew
Yusuf Ahmad

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Abstract

Using the recently developed linearity test and nonlinear unit root test, this study shows that the income gaps of Finland, Norway and Sweden with respect to Denmark are nonlinear but stationary with no significant trend effect, implying the Nordic countries have already attained steady state of income equality, a state beyond catching up as identified earlier in Oxley and Gresley (1999). This fresh evidence strengthens the finding of Nordic Convergence Club by these authors.

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Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 16 (2009)
Issue (Month): 12 ()
Pages: 1245-1248
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Handle: RePEc:taf:apeclt:v:16:y:2009:i:12:p:1245-1248

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  1. Oxley, Les & Greasley, David, 1999. "A Nordic Convergence Club?," Applied Economics Letters, Taylor and Francis Journals, vol. 6(3), pages 157-60, March. [Downloadable!] (restricted)
  2. Kapetanios, George & Shin, Yongcheol & Snell, Andy, 2003. "Testing for a unit root in the nonlinear STAR framework," Journal of Econometrics, Elsevier, vol. 112(2), pages 359-379, February. [Downloadable!] (restricted)
  3. Venus Khim-Sen Liew & Kian-Ping Lim, 2005. "Income Divergence? Evidence of Non-linearity in the East Asian Economies," Economics Bulletin, Economics Bulletin, vol. 15(1), pages 1-7. [Downloadable!]
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This page was last updated on 2009-12-5.


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