Convergence revisited

Evans, Paul; Karras, Georgios

doi:10.1016/s0304-3932(96)90036-7

Cited by 252 publications

(195 citation statements)

References 18 publications

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“…Among these, some empirical studies have utilized nonstationary time series techniques such as unit root tests and cointegration tests. 1 On the other hand, Evans and Karras (1996), Lee, Pesaran and Smith (1997), Evans (1998), Flessig andStrauss (2001), andMcCoskey (2002) have used unit root tests extended for panel data sets to investigate convergence across countries and the states of US; some of these tests have been proposed by Im, Pesaran and Shin (2003) (hereafter, IPS) and Maddala and Wu (1999) (hereafter, MW).…”

Section: Introductionmentioning

confidence: 99%

“…The details will be described in Section 4.1. 5 Studies on multi-country convergence often use the deviation from the cross-sectional mean and look into its nonstationarity (Evans and Karras, 1996;Lee et al, 1997;and Evans, 1998), which will be described in the later sections. each province for the following time periods : 1959-61, 1967-71, and the early 1990s (shown as grey areas in the figures).…”

Section: Introductionmentioning

confidence: 99%

“…In these investigations, the difference between two series or the deviation from the mean value of all cross-sectional units is usually used, and the difference or the mean deviation is often assumed to be zero mean stationary when absolute convergence exists, or level stationary when conditional convergence exists (Bernard and Durlauf, 1995;Evans and Karras, 1996). Thus, these analyses require tests which are defined under DGPs without a time trend, instead of DGPs with a time trend.…”

Section: Introductionmentioning

confidence: 99%

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China's regional convergence in panels with multiple structural breaks

Matsuki

Usami

2011

Applied Economics

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This study investigates the existence of regional convergence of per capita outputs in China from 1952-2004, particularly focusing on considering the presence of multiple structural breaks in the provincial-level panel data. First, the panel-based unit root test that allows for occurrence of multiple breaks at various break dates across provinces is developed; this test is based on the p-value combination approach suggested by Fisher (1932). Next, the test is applied to China's provincial real per capita outputs to examine the regional convergence in China. To obtain the p-values of unit root tests for each province, which are combined to construct the panel unit root test, this study assumes three data generating processes: a driftless random walk process, an ARMA process, and an AR process with cross-sectionally dependent errors in Monte Carlo simulation.The results obtained from this study reveal that the convergence of the provincial per capita outputs exists in each of the three geographically classified regions-the Eastern, Central, and Western regions-of China.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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China's regional convergence in panels with multiple structural breaks

Matsuki

Usami

2011

Applied Economics

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“…Some papers often find convergence, while others conclude that GDP differentials persist and, therefore, economies diverge. On the one hand, Evans and Karras (1996) and Evans (1997) find stochastic convergence for the contiguous US states from 1929 to 1991, as well as for 54 countries using the Summers and Heston database from 1950 to 1990. On the other hand, Lee, Pesaran and Smith (1997) conduct convergence tests and find that steady-state growth rates differ substantially between the economies of 102 countries between 1960 and 1989.…”

Section: Introductionmentioning

confidence: 99%

Panel data stochastic convergence analysis of the Mexican regions

Carrion‐i‐Silvestre

Germán–Soto

2008

Empir Econ

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Abstract:The stochastic convergence amongst Mexican Federal entities is analyzed in panel data framework. The joint consideration of cross-section dependence and multiple structural breaks is required to ensure that the statistical inference is based on statistics with good statistical properties. Once these features are accounted for, evidence in favour of stochastic convergence is found. Since stochastic convergence is a necessary, yet insufficient condition for convergence as predicted by economic growth models, the paper also investigates whether E-convergence process has taken place. We found that the Mexican states have followed either heterogeneous convergence patterns or divergence process throughout the analyzed period.

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“…We apply a modi…ed Evans and Karras (1996) testing procedure to three samples (Europe, OECD and World).We propose a nested tests procedure to characterize various convergence processes : absolute or conditional, with or without a common speed of convergence.In the conditional convergence context, we are particularly concerned with the information included in individual e¤ects.We …nd evidence supporting the existence of an absolute and common convergence process for per capita GDP in the European Union sample . As concerns the OECD sample, structural disparities imply only a conditional convergence process occurring at country-speci…c speeds.…”

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confidence: 99%

Testing Convergence: A Panel Data Approach

Gaulier¹,

Hurlin²,

Jean-Pierre³

1999

Annales d'Économie et de Statistique

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This paper brie ‡y presents new empirical tests of the convergence hypothesis based on panel data. We apply a modi…ed Evans and Karras (1996) testing procedure to three samples (Europe, OECD and World).We propose a nested tests procedure to characterize various convergence processes : absolute or conditional, with or without a common speed of convergence.In the conditional convergence context, we are particularly concerned with the information included in individual e¤ects.We …nd evidence supporting the existence of an absolute and common convergence process for per capita GDP in the European Union sample . As concerns the OECD sample, structural disparities imply only a conditional convergence process occurring at country-speci…c speeds. For our World sample (86 countries) there is no convergence process at all.For OECD countries, a …rst study of …xed e¤ects is proposed. It shows that only the private and public investment ratios are signi…cantly linked to those unobservable structural disparities. ² Mots clés : Convergence, Tests de racine unitaire, Panel.

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Convergence revisited

Cited by 252 publications

References 18 publications

China's regional convergence in panels with multiple structural breaks

China's regional convergence in panels with multiple structural breaks

Panel data stochastic convergence analysis of the Mexican regions

Testing Convergence: A Panel Data Approach

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