Testing for Stochastic and Beta-convergence in Latin American Countries
AbstractThis paper uses time-series data from nineteen Latin American countries and the U.S. to test for income convergence using two existing definitions of convergence and a new testable definition of β-convergence. Only Dominican Republic and Paraguay were found to pair-wise converge according to the Bernard and Durlauf (1995) definition. More evidence of stochastic convergence exists when allowing for structural breaks using the two-break minimum LM unit root of Lee and Strazicich (2003). The results show greater evidence of convergence within Central America than within South America. Dominican Republic is the only country that complies with the neoclassical conditions of income convergence.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36741.
Date of creation: May 2011
Date of revision:
Publication status: Published in Applied Econometrics and International Development 2.11(2011): pp. 123-138
Economic growth; Convergence; Latin America; Time-series;
Other versions of this item:
- ESCOBARI, Diego, 2011. "Testing for Stochastic and Beta-convergence in Latin American Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 11(2).
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- O54 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-27 (All new papers)
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