Pitfalls In Estimating ß-Convergence By Means Of Panel Data: An Empirical Test
AbstractThis paper aims to test the conjecture advanced in a recent work by Bianchi and Menegatti (2007) that usual !convergence panel regressions may produce biased evidence, due to their inability to distinguish between actual catching-up across countries and decreasing growth rates over time within countries. The test considers different sub-groups in a dataset of 72 countries for the period 1970-2000 and introduces both human capital and proxies for technological differences into the analysis. The results confirm the conjecture that traditional evidence about - convergence may be misleading; they also show that catching-up across countries is weaker than usually claimed and that this process occurred only in some sub-groups of countries.
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Bibliographic InfoPaper provided by University of Pavia, Department of Economics and Quantitative Methods in its series Quaderni di Dipartimento with number 102.
Length: 15 pages
Date of creation: Sep 2009
Date of revision:
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Catching-up; Convergence; Economic Growth; Panel Estimation Techniques.;
Other versions of this item:
- Carluccio Bianchi & Federica Calidoni & Mario Menegatti, 2009. "Pitfalls in estimating β-convergence by means of panel data: an empirical test," International Review of Economics, Springer, vol. 56(4), pages 347-357, December.
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies
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