Panel data stochastic convergence analysis of the Mexican regions

Carrion‐i‐Silvestre, Josep Lluís; Germán–Soto, Vicente

doi:10.1007/s00181-008-0234-x

Cited by 33 publications

(23 citation statements)

References 48 publications

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“…Tomljanovich and Vogelsang () and Cunado and Perez de Gracia () note that, for the deterministic and catching‐up hypotheses to hold, level stationarity and trend stationarity are necessary conditions, respectively. To investigate the sufficient condition for catching up, we follow the models of Tomljanovich and Vogelsang (), Cunado and Perez de Gracia (), and Carrion‐i‐Silvestre and German‐Soto () by utilising equation to further test the null of trend stationarity:

R I_{i, t} = α + β T + \sum_{k = 1}^{m_{i}} θ_{i, k} D U_{i, k, t} + \sum_{k = 1}^{m_{i}} ρ_{i, k} D T_{i, k, t} + ε_{i, t}

…”

Section: The Convergence Hypothesis In Real Incomementioning

confidence: 99%

“…We define the regressors as follows:

D U_{i, k, t} = {\begin{array}{l} left & 1 & i f t > T B_{i, k} \\ left & 0 & o t h e r w i s e \end{array}

D T_{i, k, t} = {\begin{array}{l} left & t - T B_{i, k} & i f t > T B_{i, k} \\ left & 0 & o t h e r w i s e \end{array}

Here, TB i , k denotes the k ‐th break location for the i ‐th country, with k = {1, … , m i }, and m i ≥ 1. Because real per capita GDP in each African country was less than real per capita GDP in the USA in 1969, according to Carrion‐i‐Silvestre and German‐Soto (:318), there is evidence of a catching‐up process if the coefficients of the DU and DT parameters in each regime are significant at least at the 10% level of significance and have opposite signs, i.e. θ k < 0 and ρ k > 0, or θ k > 0 and ρ k < 0.…”

Section: The Convergence Hypothesis In Real Incomementioning

confidence: 99%

“…This paper has examined the catching-up hypothesis with respect to the USA by measuring real per capita GDP in 52 African countries over the 1969-2011 period. We used the Carrion-i- Silvestre et al (2005) stationarity test, which enabled us to test for structural breaks, using an intercept term and a linear trend slope. Our findings show that convergence patterns vary among African countries.…”

Section: R_s_africa_trmentioning

confidence: 99%

“…Because the USA has the highest level of per capita real GDP, we select the USA as the leader in our test of the convergence hypothesis. 1 To this end, we utilise a new stationarity test proposed by Carrion-i-Silvestre et al (2005) to examine convergence of real income because of specific advantages of this test relative to unit root tests. The Carrion-i-Silvestre, del Barrio-Castro and López-Bazo (CBL;Carrion-i-Silvestre et al, 2005) stationarity test is an extension test specification proposed by Kwiatkowski et al (1992), who test the null hypothesis of stationarity.…”

Section: Introductionmentioning

confidence: 99%

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Income Convergence in African Countries: Evidence from a Stationary Test With Multiple Structural Breaks

Ranjbar¹,

Chang

Chen

2013

South African J Economics

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This paper examines the catching‐up (stochastic convergence in real per capita income) hypothesis for 52 African countries with respect to the USA. over the 1969‐2011 period, using a highly flexible stationarity test. The empirical results show (i) that all African countries experienced at least one break, switching between catching‐up and divergence paths during the sample period; (ii) that structural breaks tend to coincide with political instability, trade liberalisation policies and terms of trade shocks; (iii) that among the 52 African countries studied, only five lie on the catching‐up path, while the remaining 47 diverge from the USA. Our results show that the economic performance of African countries fall far behind those of the USA and that the economic growth tragedy of Africa continues.

show abstract

R I_{i, t} = α + β T + \sum_{k = 1}^{m_{i}} θ_{i, k} D U_{i, k, t} + \sum_{k = 1}^{m_{i}} ρ_{i, k} D T_{i, k, t} + ε_{i, t}

…”

Section: The Convergence Hypothesis In Real Incomementioning

confidence: 99%

“…We define the regressors as follows:

D U_{i, k, t} = {\begin{array}{l} left & 1 & i f t > T B_{i, k} \\ left & 0 & o t h e r w i s e \end{array}

D T_{i, k, t} = {\begin{array}{l} left & t - T B_{i, k} & i f t > T B_{i, k} \\ left & 0 & o t h e r w i s e \end{array}

Section: The Convergence Hypothesis In Real Incomementioning

confidence: 99%

Section: R_s_africa_trmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Income Convergence in African Countries: Evidence from a Stationary Test With Multiple Structural Breaks

Ranjbar¹,

Chang

Chen

2013

South African J Economics

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show abstract

“…Carrion-i-Silvestre and German-Soto (2009) also indicate that the neglect of the crosssectional dependence might mislead the examination to infer that the panel data is stationary, even though it is not truly.…”

mentioning

confidence: 96%