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Pitfalls In Estimating ß-Convergence By Means Of Panel Data: An Empirical Test

Author

Listed:
  • Carluccio Bianchi

    (Department of Economics and Quantitative Methods, University of Pavia)

  • Federica Calidoni

    (National Institute of Public Health (FHI))

  • Mario Menegatti

    (Dipartimento di Economia, Università di Parma)

Abstract

This paper aims to test the conjecture advanced in a recent work by Bianchi and Menegatti (2007) that usual !convergence panel regressions may produce biased evidence, due to their inability to distinguish between actual catching-up across countries and decreasing growth rates over time within countries. The test considers different sub-groups in a dataset of 72 countries for the period 1970-2000 and introduces both human capital and proxies for technological differences into the analysis. The results confirm the conjecture that traditional evidence about - convergence may be misleading; they also show that catching-up across countries is weaker than usually claimed and that this process occurred only in some sub-groups of countries.

Suggested Citation

  • Carluccio Bianchi & Federica Calidoni & Mario Menegatti, 2009. "Pitfalls In Estimating ß-Convergence By Means Of Panel Data: An Empirical Test," Quaderni di Dipartimento 102, University of Pavia, Department of Economics and Quantitative Methods.
    • Handle: RePEc:pav:wpaper:102
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    References listed on IDEAS

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    1. Carluccio Bianchi & Mario Menegatti, 2007. "On the potential pitfalls in estimating β-convergence by means of pooled and panel data," Applied Economics Letters, Taylor & Francis Journals, vol. 14(13), pages 963-967.
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    Cited by:

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    2. Hakan SARIBAŞ, 2016. "Ana Akım Büyüme Modeli ve Yakınsama Hipotezlerinin Analizi: Panel Veri Yaklaşımı," Sosyoekonomi Journal, Sosyoekonomi Society, issue 24(30).
    3. Donatella Baiardi, 2012. "Innovation and the environmental Kuznets curve: the case of CO, NMVOCs and SOx in the Italian regions," Quaderni di Dipartimento 156, University of Pavia, Department of Economics and Quantitative Methods.

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    More about this item

    Keywords

    Catching-up; Convergence; Economic Growth; Panel Estimation Techniques.;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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