Cross-country output convergence and growth: Evidence from varying coefficient nonparametric method

Kui-Wai Li (), Xianbo Zhou and Zhewen Pan

Economic Modelling, 2016, vol. 55, issue C, 32-41

Abstract: This article uses a nonparametric varying coefficient panel data model to study the convergence of real GDP per capita among 120 world economies for the sample period of 1980–2010. The estimates show that the indirect contribution of initial income via the control variables is important. The mediating effect of control variables to affect growth is positive. The conditional speed of convergence is larger than the absolute counterpart at all levels of initial income. The convergence hypothesis does not hold for economies with extremely low level of development. The conclusion is robust for regional subsamples of Europe, Asia, Latin America and Africa.

Keywords: Convergence; Growth; Varying coefficient model; Nonparametric (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (13)

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Working Paper: Cross-Country Output Convergence and Growth: Evidence from Varying Coefficient Nonparametric Method (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:55:y:2016:i:c:p:32-41

DOI: 10.1016/j.econmod.2016.02.003

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