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New evidence on the convergence of international income from a group of 29 countries

  • John Dawson

    ()

  • Amit Sen

    ()

This paper updates and extends the time-series evidence on the convergence of international incomes using a set of 29 countries over the period 1900-2001. Time-series tests for stochastic convergence are supplemented with tests which provide evidence on the notion of "Beta-convergence" predicted by the Solow model. The evidence indicates that the relative income series of 21 countries are consistent with stochastic convergence, and that Beta-convergence has occurred in at least 17 countries at some point over the 1900-2001 period. Further examination of the properties of the Beta- convergence test provides anecdotal evidence of conditional convergence during the post-war period in seven countries for which the convergence hypothesis was initially rejected. Analysis of the cross-country dispersion of incomes over time also suggests that convergence has occurred over the 1900-2001 period, with structural breaks associated with World War II in many countries causing a break in the convergence process.

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File URL: http://hdl.handle.net/10.1007/s00181-006-0099-9
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Article provided by Springer in its journal Empirical Economics.

Volume (Year): 33 (2007)
Issue (Month): 2 (September)
Pages: 199-230

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Handle: RePEc:spr:empeco:v:33:y:2007:i:2:p:199-230
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