IDEAS home Printed from https://ideas.repec.org/a/agr/journl/vxxy2013i12(589)p57-66.html
   My bibliography  Save this article

Does convergence of incomes still exist among developed economies? Time series evidence in G7 countries

Author

Listed:
  • Sakiru Adebola SOLARIN

    (Multimedia University Malaysia, Malaysia)

Abstract

In this paper, we examine the presence of convergence of real per capita incomes in G7 countries for the period of 1870-2008, using the group average and pairwise approach. Lee and Strazicich (2003, 2004) unit root tests that provide for structural break(s) are utilised to verify incidence of stochastic convergence, a necessary condition for conditional convergence, while Carlino and Mills (1993) method is employed to confirm the existence of β-convergence, a sufficient requirement for conditional convergence. Among the possible 21 pairwise stochastic convergence cases, we observe nine pairwise stochastic convergence cases, with Japan as the only country not to have stochastic convergence with any of the G7 countries. Although Germany, France and the US stochastically converge towards the G7 average, only the US conditionally converges to the average of G7 countries.

Suggested Citation

  • Sakiru Adebola SOLARIN, 2013. "Does convergence of incomes still exist among developed economies? Time series evidence in G7 countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(12(589)), pages 57-66, December.
  • Handle: RePEc:agr:journl:v:xx:y:2013:i:12(589):p:57-66
    as

    Download full text from publisher

    File URL: http://store.ectap.ro/articole/932.pdf
    Download Restriction: no

    File URL: http://www.ectap.ro/articol.php?id=932&rid=105
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agr:journl:v:xx:y:2013:i:12(589):p:57-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mircea Dinu (email available below). General contact details of provider: https://edirc.repec.org/data/agerrea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.