Income convergence: fresh evidence from the Nordic countries

Liew, Venus Khim-Sen and Ahmad, Yusuf (2006): Income convergence: fresh evidence from the Nordic countries. Unpublished.

Abstract

Using the recently developed linearity test and non-linear unit root test, this study shows that the income gaps of Finland, Norway and Sweden with respect to Denmark are non-linear but stationary with no significant trend effect, implying the Nordic countries have already attained steady state of income equality, a state beyond catching up as identified earlier in Oxley and Greasley (1999). This fresh evidence strengthens the finding of Nordic Convergence Club by these authors.

• Item Type: MPRA Paper
• Institution: Universiti Malaysia Sabah
• Language: English
• Keywords: Income Convergence; Nordic Countries; Nonlinear; Linearity; Catching Up; Long-run convergence
• Subjects: O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O10 - General; F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods: General > C12 - Hypothesis Testing

References

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Tang, T.C., K.P. Lim and V.K.S. Liew (forthcoming) Is balancing item of balance of payments accounts sustainable? fresh evidence from non-linear unit root test. Finance Letters.