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Additional Empirical Evidence on Real Convergence: A Fractionally Integrated Approach

  • Juncal Cunado

    ()

    (School of Economics and Business Administration, University of Navarra)

  • Luis A. Gil-Alana

    ()

    (School of Economics and Business Administration, University of Navarra)

  • Fernando Pérez de Gracia

    ()

    (School of Economics and Business Administration, University of Navarra)

This article examines the real convergence hypothesis in 15 OECD countries. For this purpose, we examine the order of integration of the real GDP per capita series in these countries as well as their differences with respect to the US which is used as a benchmark country. We use both parametric and semiparametric methods and the results show that convergence is only achieved in half of the countries, namely, Austria, Australia, Canada, Finland, Germany, Japan and the UK. On the contrary, the results for Belgium, Denmark, France, Italy, the Netherlands, Norway and Sweden show strong evidence against this hypothesis.

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File URL: http://www.unav.es/facultad/econom/files/workingpapersmodule/@random437a048e3df62/1132244011_wp0103.pdf
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Paper provided by School of Economics and Business Administration, University of Navarra in its series Faculty Working Papers with number 01/03.

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Length: 31 pages pages
Date of creation: Jan 2003
Date of revision:
Publication status: Published, Review of World Economics, 2006, vol. 142, pp. 67-91
Handle: RePEc:una:unccee:wp0103
Contact details of provider: Web page: http://www.unav.es/facultad/econom

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