Empirics for economic growth and convergence

Quah, Danny (1995) Empirics for economic growth and convergence. CEP discussion paper; CEPDP0253 (253). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

The convergence hypothesis has generated a huge empirical literature: this paper critically reviews some of the earlier key ndings, claries their implications, and relates them to more recent results. Particular atten- tion is devoted to interpreting convergence empirics. The main ndings 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 under- standing convergence; a model of polarization in economic growth clarifies those difficultles. (3) The data, more revealingly modelled, show persis- tence 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, un- ambiguous up to sampling error, is observed across US states.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 1995 the author
Divisions:	Centre for Economic Performance Economics
Subjects:	H Social Sciences > HB Economic Theory
JEL classification:	C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C23 - Models with Panel Data C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C21 - Cross-Sectional Models; Spatial Models; Treatment Effect Models C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C22 - Time-Series Models O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
Date Deposited:	27 Apr 2007
Last Modified:	13 Sep 2024 19:36
URI:	http://eprints.lse.ac.uk/id/eprint/2136

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