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Cited by 343Economic Growth and ProductivityMonetary Policy and Economic ImpactEconomic Theory and Policy

The DOI matches its Crossref record; 36 of the 36 references it cites were found in a registry or an index.

A pair-wise approach to testing for output and growth convergence

Hashem Pesaran, M.·2007·Journal of Econometrics
DOI 10.1016/j.jeconom.2006.05.024
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Abstract

This paper proposes a pair-wise approach to testing for output convergence that considers all N(N-1)/2 possible pairs of log per capita output gaps across N economies. A general probabilistic definition of output convergence is also proposed, which suggests that all such output gap pairs must be stationary with a constant mean. The approach is compatible with individual output series having unit roots, does not involve the choice of a reference country in computation of output gaps, and can be applied when N is large relative to T (the time dimension of the panel). The proposed test is applied to output series in the Penn World Tables over 1950-2000, as well as to Maddion’s historical series over 1870-2000. Overall, the results do not support output convergence, and suggest that the findings of convergence clubs in the literature might be spurious. However, significant evidence of growth convergence is found, a result which is reasonably robust to the choice of the sample period and country groupings. Non-convergence of log per capita outputs combined with growth convergence suggests that while common technological progress seems to have been diffusing reasonably widely across economies, there are nevertheless important countryspecific factors (for example, wars, famines, revolutions, regime and institutional changes) that render output gaps highly persistent, such that we can not be sure that the probability for the outputs gaps to lie within a fixed range will be non-zero.

Overview

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Crossref · 10.1016/j.jeconom.2006.05.024

Cites

36 of 36 references verified0 citation errors · 0 not checkable

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Citations

Cites

Research works printed but not linked: 2

  1. Bianchi, 1997, Testing for convergence: evidence from nonparametric multimodality tests, Journal of Applied Econometrics, 12, 393, 10.1002/(SICI)1099-1255(199707)12:4<393::AID-JAE447>3.0.CO;2-J · DOI
  2. Pesaran, M.H., Pesaran, B., 2007. Microfit 5. Oxford University Press, Oxford, forthcomming.

Cited by

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Metadata

Authors
Hashem Pesaran, M.
Venue
Journal of Econometrics
Publisher
Elsevier BV
Published
2007-05
Volume
138
Issue
1
Pages
312-355
ISSN
0304-4076 (ISSN-L)
DOI
10.1016/j.jeconom.2006.05.024
OpenAlex
W3121332458
Cited by
343
References
36
Citations by year
2026: 8 · 2025: 15 · 2024: 13 · 2023: 17 · 2022: 19 · 2021: 16 · 2020: 18 · 2019: 22 · 2018: 20 · 2017: 23 · 2016: 17 · 2015: 22 · 2014: 13 · 2013: 22 · 2012: 10
FWCI
34.46
Type
journal article
Language
en
Open access
closed
Licence
www.elsevier.com/tdm/userlicense/1.0/ (tdm)
Locations
Journal of Econometrics (publishedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Monetary Policy and Economic Impact
  • Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Economic Theory and Policy
Keywords
output convergence, growth convergence, panel data, unit roots, non-stationarity, club convergence, technology diffusion, Penn World Table, small sample properties

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.