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Tests of the "convergence hypothesis" : some further results

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  • Cohen, Daniel

Abstract

This paper offers new tests of the `convergence hypothesis'. It first analyses the pattern of growth of measured inputs (human and physical capital conventionally measured by an inventory method) and shows that these tests sustain the hypothesis. On the other hand, when the pattern of growth of revealed inputs (physical capital and Solow residual) is analysed, one is led to reject the convergence theory. In order to understand what lies at the heart of this discrepancy, the paper shows that the poor countries failed to catch up with the rich countries not so much because they failed to raise their school enrolments (or the UN-conditional convergence of the stock of measured inputs would not hold), but because the law of motion of human capital embodies a `stock of knowledge' which they failed to raise adequately.

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Bibliographic Info

Paper provided by CEPREMAP in its series CEPREMAP Working Papers (Couverture Orange) with number 9509.

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Length: 23 pages
Date of creation: 1995
Date of revision:
Handle: RePEc:cpm:cepmap:9509

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Cited by:
  1. Voxi Heinrich Amavilah, 2005. "Solow and the Native Americans: Technological Residuals and the Economic Performance of U.S. Native American Economies," Development and Comp Systems 0505008, EconWPA.
  2. Spruk, Rok, 2011. "Productivity and income convergence in transition: theory and evidence from Central Europe," MPRA Paper 33389, University Library of Munich, Germany.
  3. Voxi Heinrich S Amavilah, 2004. "Economic Performance in a Cross-Section of U.S. Native American Economies," GE, Growth, Math methods 0405003, EconWPA.
  4. Cohen, Daniel & Soto, Marcelo, 2002. "Why are Poor Countries Poor? A Message of Hope which Involves the Resolution of a Becker/Lucas Paradox," CEPR Discussion Papers 3528, C.E.P.R. Discussion Papers.
  5. Dessus, Sebastien, 2001. "Human capital and growth : the recovered role of education systems," Policy Research Working Paper Series 2632, The World Bank.
  6. Voxi Heinrich S Amavilah, 2005. "INFRASTRUCTURAL v. SUPERSTRUCTURAL EFFECTS OF INSTITUTIONS ON INCOME DETERMINATION ACROSS U.S. NATIVE AMERICAN ECONOMIES," Development and Comp Systems 0505004, EconWPA.
  7. Toni Mora, 2008. "Factors conditioning the formation of European regional convergence clubs," The Annals of Regional Science, Springer, vol. 42(4), pages 911-927, December.
  8. Amavilah, Voxi Heinrich, 2008. "Domestic resources, governance, global links, and the economic performance of Sub-Saharan Africa," MPRA Paper 11193, University Library of Munich, Germany.
  9. Toni Mora, 2005. "Conditioning factors on regional European clubs - a distributional approach," ERSA conference papers ersa05p302, European Regional Science Association.
  10. Voxi Heinrich Amavilah, 2004. "Apparent Solow- and Solow-like Technological Residuals and the Economic Performance of U.S. Native American Economies," Development and Comp Systems 0406004, EconWPA.

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