Output convergence revisited: new time series results on industrialized countries

Authors: Yau, Ruey¹; Hueng, C. James²

Source: Applied Economics Letters, Volume 14, Number 1, January 2007 , pp. 75-77(3)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

Cross-country output convergence is re-examined using a flexible concept of unit roots. While the presence of a constant unit root in output-differences implies nonconvergence, the presence of a stochastic unit root on the contrary implies convergence. Using the output-differences between the USA and the other 14 OECD countries, we find output divergence only for the USA/UK and USA/Sweden country-pairs.

Document Type: Research article

DOI: http://dx.doi.org/10.1080/13504850500425543

Affiliations: 1: National Central University, Taiwan 32001, R.O.C 2: Western Michigan University, Kalamazoo, MI 49008-5330, USA

Publication date: 2007-01-01

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