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Tests of the "convergence hypothesis" : some further results

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  • Cohen, Daniel

Abstract

This paper offers new tests of the `convergence hypothesis'. It first analyses the pattern of growth of measured inputs (human and physical capital conventionally measured by an inventory method) and shows that these tests sustain the hypothesis. On the other hand, when the pattern of growth of revealed inputs (physical capital and Solow residual) is analysed, one is led to reject the convergence theory. In order to understand what lies at the heart of this discrepancy, the paper shows that the poor countries failed to catch up with the rich countries not so much because they failed to raise their school enrolments (or the UN-conditional convergence of the stock of measured inputs would not hold), but because the law of motion of human capital embodies a `stock of knowledge' which they failed to raise adequately.
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  • Cohen, Daniel, 1995. "Tests of the "convergence hypothesis" : some further results," CEPREMAP Working Papers (Couverture Orange) 9509, CEPREMAP.
  • Handle: RePEc:cpm:cepmap:9509
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    Cited by:

    1. Voxi Heinrich Amavilah, 2005. "Solow and the Native Americans: Technological Residuals and the Economic Performance of U.S. Native American Economies," Development and Comp Systems 0505008, EconWPA.
    2. Alberto Bucci, 2009. "Scale Effects, Savings and Factor Shares in a Human Capital-based Growth Model with Physical Capital Accumulation," International Economic Journal, Taylor & Francis Journals, vol. 23(3), pages 291-307.
    3. Voxi Heinrich Amavilah, 2003. "Resource Inefficiency and Poor Aggregate Economic Performance in African Countries: The Case of Namibia, 1968-1992," Development and Comp Systems 0307005, EconWPA.
    4. Toni Mora, 2005. "Conditioning factors on regional European clubs - a distributional approach," ERSA conference papers ersa05p302, European Regional Science Association.
    5. Silvia Dal Bianco, 2016. "Going clubbing in the eighties: convergence in manufacturing sectors at a glance," Empirical Economics, Springer, pages 623-659.
    6. Dessus, Sebastien, 2001. "Human capital and growth : the recovered role of education systems," Policy Research Working Paper Series 2632, The World Bank.
    7. Daniel Cohen & Marcelo Soto, 2007. "Growth and human capital: good data, good results," Journal of Economic Growth, Springer, vol. 12(1), pages 51-76, March.
    8. Bucci Alberto, 2010. "Population in Factor Accumulation-based Growth," Rivista italiana degli economisti, Società editrice il Mulino, pages 33-68.
    9. Jean-Marc Germain & Stéphanie Guichard, 1998. "L'Asie du Sud-Est : quelles perspectives de croissance à moyen terme ?," Économie et Statistique, Programme National Persée, vol. 311(1), pages 3-36.
    10. Voxi Heinrich Amavilah, 2004. "Apparent Solow- and Solow-like Technological Residuals and the Economic Performance of U.S. Native American Economies," Development and Comp Systems 0406004, EconWPA.
    11. Voxi Heinrich S Amavilah, 2004. "Economic Performance in a Cross-Section of U.S. Native American Economies," GE, Growth, Math methods 0405003, EconWPA.
    12. Cyn-Young Park & Rogelio Mercado Jr., 2017. "Economic Convergence, Capital Accumulation, and Income Traps: Empirical Evidence," Trinity Economics Papers tep1117, Trinity College Dublin, Department of Economics.
    13. Toni Mora, 2008. "Factors conditioning the formation of European regional convergence clubs," The Annals of Regional Science, Springer;Western Regional Science Association, pages 911-927.
    14. Amavilah, Voxi Heinrich, 2008. "Domestic resources, governance, global links, and the economic performance of Sub-Saharan Africa," MPRA Paper 11193, University Library of Munich, Germany.
    15. Spruk, Rok, 2011. "Productivity and income convergence in transition: theory and evidence from Central Europe," MPRA Paper 33389, University Library of Munich, Germany.
    16. Voxi Heinrich S Amavilah, 2005. "INFRASTRUCTURAL v. SUPERSTRUCTURAL EFFECTS OF INSTITUTIONS ON INCOME DETERMINATION ACROSS U.S. NATIVE AMERICAN ECONOMIES," Development and Comp Systems 0505004, EconWPA.
    17. Cohen, Daniel & Soto, Marcelo, 2002. "Why are Poor Countries Poor? A Message of Hope which Involves the Resolution of a Becker/Lucas Paradox," CEPR Discussion Papers 3528, C.E.P.R. Discussion Papers.

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    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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