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Output Convergence and International Trade: Time-Series and Fuzzy Clustering Evidence for New Zealand and Her Trading Partners, 1950-1992

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Author Info
David E. A. Giles ()

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Abstract

Using historical time-series data, we test for convergence and common trends in real per capita output for New Zealand and her four major trading partners. Both bivariate and multivariate time-series methods are used, and we also implement the fuzzy c-means clustering algorithm as an alternative basis for detecting convergence. The results of our time-series analysis accord with earlier studies - we find limited evidence of (only bivariate) convergence, but ample evidence of a small number of common trends. In contrast, our fuzzy clustering analysis reveals very strong evidence of a particular form of output convergence when the five trading countries are considered as a group.

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Paper provided by Department of Economics, University of Victoria in its series Econometrics Working Papers with number 0102.

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Length: 23 pages
Date of creation: 12 Jun 2001
Date of revision:
Handle: RePEc:vic:vicewp:0102

Note: ISSN 1485-6441
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Postal: PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2
Phone: (250)721-8540
Fax: (250)721-6214
Web page: http://web.uvic.ca/econ
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Related research
Keywords: Economic growth; international trade; convergence; common trends; cointegration; fuzzy sets; pattern recognition;

Other versions of this item:

Find related papers by JEL classification:
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O0 - Economic Development, Technological Change, and Growth - - General

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References listed on IDEAS
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Chad Stroomer & David E.A. Giles, 2003. "Income Convergence and trade Openness: Fuzzy Clustering and Time Series Evidence," Econometrics Working Papers 0304, Department of Economics, University of Victoria. [Downloadable!]
  2. David E. A. Giles & Chad Stroomer, 2003. "Does Trade Openness Affect the Speed of Output Convergence? Some Empirical Evidence," Econometrics Working Papers 0307, Department of Economics, University of Victoria. [Downloadable!]
    Other versions:
  3. David E.A. Giles & Hui Feng, 2003. "Testing For Convergence in Output and in 'Well-Being' in Industrialized Countries," Econometrics Working Papers 0302, Department of Economics, University of Victoria. [Downloadable!]
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