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Technological differences and convergence in the OECD

Author

Listed:
  • Javier Andrés

    (University of Valencia, Departamento de Análisis Económico, Avda. dels Tarongers s/n, E-46022 Valencia, Spain)

  • José E. Boscá

    (University of Valencia, Departamento de Análisis Económico, Avda. dels Tarongers s/n, E-46022 Valencia, Spain)

Abstract

In this paper we test the homogeneity of the technological parameters among OECD countries, which is the maintained hypothesis in most of the empirical growth literature. We first identify differences in the constant term of the convergence equation estimated for the OECD 1960/1990 sample using a fixed- effects estimator. Then we provide a formal test of the homogeneity of technological parameters across groups of countries. We identify at least two different groups within the OECD, with significantly different technologies. Convergence within each group is fast, supporting the notion of club convergence. Nevertheless, the implausible parameter values obtained for the leading technology club casts some doubts on the validity of the Solow model to account for the long run behaviour of this group of countries.

Suggested Citation

  • Javier Andrés & José E. Boscá, 2000. "Technological differences and convergence in the OECD," Spanish Economic Review, Springer;Spanish Economic Association, vol. 2(1), pages 11-27.
    • Handle: RePEc:spr:specre:v:2:y:2000:i:1:p:11-27
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    References listed on IDEAS

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    1. Nevin Cavusoglu & Edinaldo Tebaldi, 2006. "Evaluating growth theories and their empirical support: An assessment of the convergence hypothesis," Journal of Economic Methodology, Taylor & Francis Journals, vol. 13(1), pages 49-75.

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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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