Library Header Image
LSE Research Online LSE Library Services

Empirics for economic growth and convergence

Quah, Danny (1996) Empirics for economic growth and convergence. European Economic Review, 40 (6). pp. 1353-1375. ISSN 0014-2921

Full text not available from this repository.

Identification Number: 10.1016/0014-2921(95)00051-8


The convergence hypothesis has generated a huge empirical literature: this paper critically reviews some of the earlier key findings, clarifies their implications, and relates them to more recent results. Particular attention is devoted to interpreting convergence empirics. The main findings are: (1) The much-heralded uniform 2% rate of convergence could arise for reasons unrelated to the dynamics of economic growth. (2) Usual empirical analyses — cross-section (conditional) convergence regressions, time-series modelling, panel data analysis — can be misleading for understanding convergence; a model of polarization in economic growth clarifies those difficulties. (3) The data, more revealingly modelled, show persistence and immobility across countries: some evidence supports Baumol's idea of ‘convergence clubs’: some evidence shows the poor getting poorer, and the rich richer, with the middle class vanishing. (4) Convergence, unambiguous up to sampling error, is observed across US states.

Item Type: Article
Official URL:
Additional Information: © 1996 Elsevier
Subjects: H Social Sciences > HB Economic Theory
Sets: Collections > Economists Online
Date Deposited: 27 Apr 2007
Last Modified: 22 Aug 2012 09:32

Actions (login required)

View Item View Item