Convergence Clubs in Latin America

Barrios, Candelaria and Flores, Esther and Martínez, M. Ángeles (2019): Convergence Clubs in Latin America. Published in: Applied Economics Letters (2019)

Abstract

The aim of this work is to identify convergence clubs in 17 Latin American countries in terms of GDP per capita during the period 1990-2014. To do this we apply the methodology developed by Phillips-Sul in order to identify the different convergence clubs on the path of growth in the Latin American economy over this period. The empirical results strongly support the existence of convergence clubs, indicating that the Latin American economy consists of four groups, each converging toward its own steady-state path, with two countries being divergent.

• Item Type: MPRA Paper
• Language: English
• Keywords: Keywords: Convergence, club convergence, log t test, Latin America
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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