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Trade and Convergence: A Dynamic Panel Data Approach
Author(s) -
Ulusoy Veysel
Publication year - 2001
Publication title -
southern economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.762
H-Index - 58
eISSN - 2325-8012
pISSN - 0038-4038
DOI - 10.1002/j.2325-8012.2001.tb00402.x
Subject(s) - economics , human capital , convergence (economics) , spillover effect , panel data , econometrics , capital good , empirical research , production (economics) , international trade , macroeconomics , economy , goods and services , mathematics , economic growth , statistics
The objective of this paper is to provide, theoretically and empirically, an interpretation of comovement between the scale of an economy and its growth rate. I paid special attention to human capital accumulation and international trade environment and emphasized their spillover effects on growth and convergence among countries. 1 employed a technique using a cross‐sectional and time series panel. The estimations in my empirical models were done using the nonlinear least‐squares method in which I applied a dynamic procedure for an economy along its balanced growth path. I arrived at mixed results. The empirical results show that international spillover effects of human capital accumulation and intermediate goods production have positive and significant effects on the growth process of a nation. The national level of human capital, however, has negative and insignificant effects on this process.