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Output Convergence and International Trade: Time-Series and Fuzzy Clustering Evidence for New Zealand and Her Trading Partners, 1950-1992

  • David E. A. Giles


Using historical time-series data, we test for convergence and common trends in real per capita output for New Zealand and her four major trading partners. Both bivariate and multivariate time-series methods are used, and we also implement the fuzzy c-means clustering algorithm as an alternative basis for detecting convergence. The results of our time-series analysis accord with earlier studies - we find limited evidence of (only bivariate) convergence, but ample evidence of a small number of common trends. In contrast, our fuzzy clustering analysis reveals very strong evidence of a particular form of output convergence when the five trading countries are considered as a group.

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Paper provided by Department of Economics, University of Victoria in its series Econometrics Working Papers with number 0102.

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Length: 23 pages
Date of creation: 12 Jun 2001
Date of revision:
Handle: RePEc:vic:vicewp:0102
Note: ISSN 1485-6441
Contact details of provider: Postal: PO Box 1700, STN CSC, Victoria, BC, Canada, V8W 2Y2
Phone: (250)721-6197
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