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Income Convergence in Southern Africa: A Non-linear Time-Varying Coefficients Approach

Author

Listed:
  • Ntokozo Nzimande

    (University of Cape Town)

Abstract

This article investigated income per capita convergence in the Southern African Development Community (SADC) over the period 1980-2017 in a non-linear time-varying coefficients framework. The findings of the study suggested no overall income convergence in the SADC region, but evidence supporting the existence of convergence clubs was found indicat- ing that the SADC comprises five convergence clusters, each converging to its own steady-state equilibrium. These findings suggest that, to pro- mote convergence in the region, policies that explicitly target ’low income’ countries are warranted.

Suggested Citation

  • Ntokozo Nzimande, 2021. "Income Convergence in Southern Africa: A Non-linear Time-Varying Coefficients Approach," ERSA Working Paper Series 62, Economic Research Southern Africa.
    • Handle: RePEc:rza:ersawp:62
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    File URL: https://ersawps.org/index.php/working-paper-series/article/view/62/43
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    References listed on IDEAS

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    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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