Convergence or divergence in Latin America? A time series analysis

Authors: Galvão, A. F.1; Gomes, F. A. Reis2

Source: Applied Economics, Volume 39, Number 11, June 2007 , pp. 1353-1360(8)

Publisher: Routledge, part of the Taylor & Francis Group

Buy & download fulltext article:

OR

Price: $54.28 plus tax (Refund Policy)

Abstract:

This article investigates the occurrence of per capita income convergence in 19 Latin American countries. We apply a time series approach to test for stochastic convergence and -convergence based on structural breaks unit root tests, where the dates of breaks are unknown and determined endogenously. This approach is essential since it does not impose common break dates and parameter homogeneity among countries. In fact, the econometric methodology employed attempts to provide what was lacking in previous works. As a consequence, unlike prior studies the results indicate that there is substantial evidence in favor of conditional convergence in Latin America. We show that this evidence is even greater when analyzing South and Central America separately.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840600606278

Affiliations: 1: Department of Economics, University of Illinois at Urbana-Champaign, Champaign, IL, USA 2: Ibmec São Paulo, Vila Olímpia, São Paulo, Brazil

Publication date: June 1, 2007

More about this publication?
Related content

Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content

Text size:

A | A | A | A
Share this item with others: These icons link to social bookmarking sites where readers can share and discover new web pages. print icon Print this page