Tests of the 'Convergence Hypothesis': Some Further Results

Daniel Cohen

No 1163, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper offers new tests of the `convergence hypothesis'. It first analyses the pattern of growth of measured inputs (human and physical capital conventionally measured by an inventory method) and shows that these tests sustain the hypothesis. On the other hand, when the pattern of growth of revealed inputs (physical capital and Solow residual) is analysed, one is led to reject the convergence theory. In order to understand what lies at the heart of this discrepancy, the paper shows that the poor countries failed to catch up with the rich countries not so much because they failed to raise their school enrolments (or the UN-conditional convergence of the stock of measured inputs would not hold), but because the law of motion of human capital embodies a `stock of knowledge' which they failed to raise adequately.

Keywords: Convergence; Growth; Human Capital; Physical Capital (search for similar items in EconPapers)
JEL-codes: O4 (search for similar items in EconPapers)
Date: 1995-04

Downloads: (external link)
http://www.cepr.org/pubs/dps/DP1163.asp (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Tests of the "convergence hypothesis": some further results (1995)
Journal Article: Tests of the "Convergence Hypothesis": Some Further Results (1996)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cpr:ceprdp:1163

Ordering information: This working paper can be ordered from
http://www.cepr.org/pubs/dps/DP1163.asp

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers
Address: Centre for Economic Policy Research, 53--56 Great Sutton Street, London EC1V 0DG
Series data maintained by ().