Phiri, Andrew (2018): Robust analysis of convergence in per capita GDP in BRICS economies.

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Abstract
Whilst the issue of whether or not per capita GDP adheres to the convergence theory continues to draw increasing attention within the academic paradigm, with very little consensus having been reached in the literature thus far. Our study contributes to the literature by examining the stationarity of per capita GDP for BRICS countries using annual data collected between 1971 and 2015. Considering that our sample covers a period underlying a number of crisis and structural breaks within and amongst the BRICS countries, we rely on a robust nonlinear unit root testing procedure which captures a series of unobserved structural breaks. Our results confirm on Brazil and China being the only two BRICS economies who present the most convincing evidence of per capita GDP converging back to it’s natural equilibrium after an economic shock, whilst Russia and South Africa provide less convincing evidence of convergence dynamics in the time series and India having the weakest convergence properties.
Item Type:  MPRA Paper 

Original Title:  Robust analysis of convergence in per capita GDP in BRICS economies 
Language:  English 
Keywords:  Per capita GDP; Convergence; unit root tests; nonlinearities; structural breaks; BRICS Emerging economies 
Subjects:  C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General > C12  Hypothesis Testing: General C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General > C13  Estimation: General C  Mathematical and Quantitative Methods > C2  Single Equation Models ; Single Variables > C21  CrossSectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions C  Mathematical and Quantitative Methods > C2  Single Equation Models ; Single Variables > C22  TimeSeries Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes C  Mathematical and Quantitative Methods > C5  Econometric Modeling > C51  Model Construction and Estimation C  Mathematical and Quantitative Methods > C5  Econometric Modeling > C52  Model Evaluation, Validation, and Selection O  Economic Development, Innovation, Technological Change, and Growth > O4  Economic Growth and Aggregate Productivity > O47  Empirical Studies of Economic Growth ; Aggregate Productivity ; CrossCountry Output Convergence 
Item ID:  86936 
Depositing User:  Dr. Andrew Phiri 
Date Deposited:  28 May 2018 19:28 
Last Modified:  28 May 2018 19:30 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/86936 