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A new approach for analysing income convergence across countries

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  • VAN KERM Philippe
  • O'NEILL Donal

Abstract

In this paper we develop a coherent framework that integrates both traditional measures of b-convergence and s-convergence within a study of cross-country income dynamics. To do this we exploit the close links that exist between studies of income convergence and studies analysing the progressivity of the tax system. Our framework offers a simple algebraic decomposition of s-convergence as the combined effect of b-convergence and leapfrogging among countries. We illustrate our approach using data for the period 1960-2000.

Suggested Citation

  • VAN KERM Philippe & O'NEILL Donal, 2004. "A new approach for analysing income convergence across countries," IRISS Working Paper Series 2004-03, IRISS at CEPS/INSTEAD.
    • Handle: RePEc:irs:iriswp:2004-03
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    References listed on IDEAS

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    1. Krasnopjorovs, Olegs, 2013. "Latvijas ekonomikas izaugsmi noteicošie faktori [Factors of Economic Growth in Latvia]," MPRA Paper 47550, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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