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New Evidence on the Convergence of International Income from a Group of 29 Countries


  • John W. 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.

Suggested Citation

  • John W. Dawson & Amit Sen, 2005. "New Evidence on the Convergence of International Income from a Group of 29 Countries," Working Papers 05-22, Department of Economics, Appalachian State University.
  • Handle: RePEc:apl:wpaper:05-22

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    References listed on IDEAS

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    Cited by:

    1. Serranito, Francisco, 2013. "Heterogeneous technology and the technological catching-up hypothesis: Theory and assessment in the case of MENA countries," Economic Modelling, Elsevier, vol. 30(C), pages 685-697.
    2. Burcu Ozcan, 2014. "Does Income Converge among EU Member Countries following the Post-War Period? Evidence from the PANKPSS Test," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 22-38, October.
    3. Marine Hadengue & Thierry Warin, 2013. "Patterns of Specialization and (Un)conditional Convergence: The Cases of Brazil, China and India," CIRANO Working Papers 2013s-17, CIRANO.
    4. King, Alan & Ramlogan-Dobson, Carlyn, 2015. "Is Africa Actually Developing?," World Development, Elsevier, vol. 66(C), pages 598-613.
    5. Krasnopjorovs, Olegs, 2013. "Latvijas ekonomikas izaugsmi noteicošie faktori
      [Factors of Economic Growth in Latvia]
      ," MPRA Paper 47550, University Library of Munich, Germany.
    6. Diego Romero-Ávila, 2009. "The Convergence Hypothesis For Oecd Countries Reconsidered: Panel Data Evidence With Multiple Breaks, 1870-2003," Manchester School, University of Manchester, vol. 77(4), pages 552-574, July.
    7. King, Alan & Ramlogan-Dobson, Carlyn, 2015. "International income convergence: Is Latin America actually different?," Economic Modelling, Elsevier, vol. 49(C), pages 212-222.
    8. Faiza Azhar KHAN, 2016. "Revisiting the Relationship between β and σ Convergence," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 26(1), pages 43-52.
    9. Josep Carrion-i-Silvestre & Vicente German-Soto, 2009. "Panel data stochastic convergence analysis of the Mexican regions," Empirical Economics, Springer, vol. 37(2), pages 303-327, October.
    10. Bah, Mohamed Siry, 2015. "Real convergence in West African Economic and Monetary Union (WAEMU)," Economics Letters, Elsevier, vol. 135(C), pages 19-23.
    11. Ceylan, Reşat & Abiyev, Vasif, 2016. "An examination of convergence hypothesis for EU-15 countries," International Review of Economics & Finance, Elsevier, vol. 45(C), pages 96-105.

    More about this item

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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