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A Time‐Series Perspective on Convergence: Australia, UK and USA since 1870 *
Author(s) -
OXLEY LES,
GREASLEY DAVID
Publication year - 1995
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1995.tb01893.x
Subject(s) - convergence (economics) , economics , per capita , per capita income , series (stratigraphy) , time series , perspective (graphical) , econometrics , economic growth , statistics , demography , mathematics , sociology , paleontology , population , geometry , biology
Tests of the Convergence Hypothesis or the tendency for per capita income levels to narrow over time, have generally utilized cross‐sectional data and have usually found conflicting evidence. In this study we utilize time‐series data on Australia, UK and USA for the period 1870–1992, and time‐series tests, to consider both ‘catching‐up2 and ‘long‐run convergence’. The paper finds evidence in favour of long‐run convergence in per capita income levels for the UK and Australia for the period 1892–1992 and catching‐up in the case of UK and USA, and Australia and USA, giving some support for the exogenous approaches to economic growth.