A Time-Series Perspective on Convergence: Australia, UK and USA since 1870
Texts of the convergence hypothesis or the tendency for per capita income levels to narrow over time have generally utilized cross-sectional data and have usually found conflicting evidence. In this study, the authors utilize time-series data on Australia, the United Kingdom, and the United States for the period 1870-1992 and time-series tests to consider both 'catching-up' and 'long-run convergence.' The paper finds evidence in favor of long-run convergence in per capita income levels for the United Kingdom and Australia for the period 1892-1992 and catching-up in the case of the United Kingdom and the United States, and Australia and the United States, giving some support for the exogenous approaches to economic growth. Copyright 1995 by The Economic Society of Australia.
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Volume (Year): 71 (1995)
Issue (Month): 214 (September)
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