Mavroudeas, Stavros and Siriopoulos, Costas (1998): Τesting convergence and divergence: the data from Greece. Published in: Journal of Applied Business Research , Vol. 14, No. 1 (1998)
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The convergence hypothesis is a popular tenet in modern discussions in macroeconomics and regional economics. It derives from the very fundamental properties of the neoclassical single-sector growth model, and its assumption of diminishing returns to scale. Following this theoretical framework a number of empirical tests (σ or unconditional β or conditional β-convergence) has been developed. This paper tests unconditional and conditional β-convergence for the Greek economy. Three issues are being considered: (i)if there is regional convergence, (ii) if there is a North-Southern divide, (iii) if Greece is converging with the other economies taking part in the European integration project. Our empirical results reject the convergence hypothesis in all cases. These findings, together with similar findings for many other economies, pose significant problems for the theoretical assumptions of the neoclassical growth model with exogenous technical change.
|Item Type:||MPRA Paper|
|Original Title:||Τesting convergence and divergence: the data from Greece|
|Keywords:||convergence; neoclassical theory; Greece|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R15 - Econometric and Input-Output Models; Other Models
R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
|Depositing User:||Stavros Mavroudeas|
|Date Deposited:||19. Sep 2010 02:19|
|Last Modified:||11. Feb 2013 10:48|
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