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Convergence in Sub-Saharan Africa: A Nonstationary Panel Data Approach

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McCoskey, Suzanne K

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Abstract

Given the development of time series econometrics and nonstationary data analysis, St. Aubyn (Empirical Economics 1999) demonstrates a new paradigm for testing income convergence, or better defined, income stability, namely testing the stationarity of pair-wise income differentials. In this paper, a panel data set of Sub-Saharan African countries is constructed and panel cointegration and unit root tests are used to investigate the convergence properties of incomes and standards of living within Africa. Overall, little evidence is found to substantiate claims of convergence across Africa, although in some cases, smaller convergence clubs within Africa may be found. In addition the use of nonstationary panel data techniques is proposed for the testing and establishing of coherent convergence clubs. Copyright 2002 by Taylor and Francis Group

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

Volume (Year): 34 (2002)
Issue (Month): 7 (May)
Pages: 819-29
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Handle: RePEc:taf:applec:v:34:y:2002:i:7:p:819-29

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  1. Matsuki, Takashi & Usami, Ryoichi, 2007. "China's Regional Convergence in Panels with Multiple Structural Breaks," MPRA Paper 10167, University Library of Munich, Germany, revised 17 May 2008. [Downloadable!]
  2. Arbache, Jorge Saba & Page, John, 2008. "Hunting for Leopards : long run country income dynamics in Africa," Policy Research Working Paper Series 4715, The World Bank. [Downloadable!]
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  3. Anthony N. Rezitis, 2005. "Agricultural productivity convergence across Europe and the United States of America," Applied Economics Letters, Taylor and Francis Journals, vol. 12(7), pages 443-446, June. [Downloadable!] (restricted)
  4. Amélie Charles & Olivier Darné & Jean-François Hoarau, 2009. "Does the real GDP per capita convergence hold in the Common Market for Eastern and Southern Africa?," Working Papers hal-00422522_v1, HAL. [Downloadable!]
  5. Matsuki, Takashi & Usami, Ryoichi, 2008. "Long-run growth patterns within Asian NIEs: Empirical analysis based on the panel unit root test, allowing the heterogeneity of time trend and endogenous multiple structural breaks," MPRA Paper 11541, University Library of Munich, Germany. [Downloadable!]
  6. 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!]
  7. Baliamoune, Mina N., 2002. "Assessing the Impact of One Aspect of Globalization on Economic Growth in Africa," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  8. Mark J. Holmes, 2005. "New evidence on long-run output convergence among Latin American countries," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 299-319, November. [Downloadable!]
  9. Abdulnasser Hatemi-J & Manuchehr Irandoust, 2006. "The response of industry employment to exchange rate shocks: evidence from panel cointegration," Applied Economics, Taylor and Francis Journals, vol. 38(4), pages 415-421, March. [Downloadable!] (restricted)
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