This article aims at testing the convergence hypothesis in MENA region using new tests of a unit root in panel data. Quah (1994, 1998), Evans & Karras (1996) and Bertrand & Jones (1996) recommend this technique to evaluate the income convergence hypothesis. According to them it avoids econometric problems of the cross-countries growth regressions testing convergence and sample bias of the multivariate cointegration techniques. We test both the absolute and the conditional convergence with panel unit roots tests using the Summers and Heston's data 5.2 and 6.1 on the periods of 1960 to 1990 and from 1960 to 2000. The absolute convergence hypothesis use panel unit roots test with no fixed individual effects. The catching-up hypothesis is accepted for most groups of the region countries during both periods (1960 to 1990 and 1960 to 2000). If we allow a break in the unit root tests, the hypothesis is accepted for more groups. The conditional convergence requires panel unit root tests with fixed individual effects. Again, during the whole periods, the conditional convergence is accepted for the major part of the remaining groups of MENA countries.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
Find related papers by JEL classification: B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Quantitative and Mathematical F1 - International Economics - - Trade O1 - Economic Development, Technological Change, and Growth - - Economic Development O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
This paper has been announced in the following NEP Reports: