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The Classical Approach to Convergence Analysis

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  • Sala-i-martin, X.

Abstract

The concepts of sigma-convergence, absolute beta-convergence and conditional beta-convergence are discussed in this paper. The concepts are applied to a variety of data sets that include a large cross-section of 110 countries, the subsample of OECD countries, the states within the United States, the prefectures of Japan, and regions within several European countries. Except for the large cross-section of countries, all data sets display strong evidence of sigma-convergence and absolute beta-convergence. The cross-section of countries exhibits sigma-divergence and conditional beta-convergence. The speed of conditional convergence, which is very similar across data sets, is close to 2 percent per year. Copyright 1996 by Royal Economic Society.

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Bibliographic Info

Paper provided by Yale - Economic Growth Center in its series Papers with number 734.

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Length: 29 pages
Date of creation: 1995
Date of revision:
Handle: RePEc:fth:yalegr:734

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Postal: U.S.A.; YALE UNIVERSITY, ECONOMIC GROWTH CENTER, YALE STATION NEW-HAVEN CONNECTICUT 06520 U.S.A
Phone: (203) 432-3610
Fax: (203) 432-3898
Web page: http://www.econ.yale.edu/~egcenter/
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Keywords: CONVERGENCE; REGIONAL ECONOMY; ECONOMIC GROWTH;

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  1. Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
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