Advanced Search
MyIDEAS: Login to save this paper or follow this series

Tests for Convergence Clubs

Contents:

Author Info

  • Corrado, L.
  • Weeks, M.

Abstract

In many applications common in testing for convergence the number of cross-sectional units is large and the number of time periods are few. In these situations tests which are founded upon an omnibus null hypothesis are characterised by a number of problems. In this paper we consider a broad class of tests of convergence based on multivariate time series and panel data methodologies, and track a gradual progression away from tests based on an omnibus null, to sequential tests and tests that are founded upon multiple pairwise comparisons. In a previous study Corrado, Martin and Weeks (2005) test for regional convergence across the European Union allowing for an endogenous selection of regional clusters using a multivariate test for stationarity. Given that the time series are relatively short, there are potential problems in basing inference on asymptotic results for stationarity tests. To circumvent this problem we bootstrap the stationarity test and explore the robustness of the cluster outcomes. In general our results show that the size distortion which aicts the asymptotic tests, and resulting in a bias towards nding less convergence, is resolved when we apply the bootstrap generated critical values. To interpret the composition of the resulting convergence clusters, the latter are tested against a variety of possible groupings suggested by recent theories and hypotheses of regional growth and convergence.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.econ.cam.ac.uk/research/repec/cam/pdf/cwpe1110.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 1110.

as in new window
Length:
Date of creation: 26 Jan 2011
Date of revision:
Handle: RePEc:cam:camdae:1110

Contact details of provider:
Web page: http://www.econ.cam.ac.uk/index.htm

Related research

Keywords: Multivariate stationarity; bootstrap tests; regional convergence;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

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.:
as in new window
  1. Sandy Dall'erba & Julie Le Gallo, 2008. "Regional convergence and the impact of European structural funds over 1989-1999: A spatial econometric analysis," Papers in Regional Science, Wiley Blackwell, vol. 87(2), pages 219-244, 06.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cam:camdae:1110. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Howard Cobb).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.