Premium
Asymptotically perfect and relative convergence of productivity
Author(s) -
Hobijn Bart,
Franses Philip Hans
Publication year - 2000
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/(sici)1099-1255(200001/02)15:1<59::aid-jae544>3.0.co;2-1
Subject(s) - convergence (economics) , context (archaeology) , productivity , econometrics , per capita , cluster (spacecraft) , selection (genetic algorithm) , economics , order (exchange) , computer science , macroeconomics , geography , population , demography , archaeology , finance , artificial intelligence , sociology , programming language
In this paper we examine the extent to which countries are converging in per capita productivity levels. We propose to use cluster analysis in order to allow for the endogenous selection of converging countries. We formally define convergence in a time series analytical context, derive the necessary and sufficient conditions for convergence, and introduce a cluster analytical procedure that distinguishes several convergence clubs by testing for these conditions using a multivariate test for stationarity. We find a large number of relatively small convergence clubs, which suggests that convergence might not be such a widespread phenomenon. Copyright © 2000 John Wiley & Sons, Ltd.