Re-examination of the convergence hypothesis among OECD countries: Evidence from Fourier quantile unit root test
Mohsen Bahmani-Oskooee (),
Tsangyao Chang (),
Zahra (Mila) Elmic and
Omid Ranjbar ()
International Economics, 2018, issue 156, 77-85
In this paper we revisit the convergence hypothesis among OECD countries. Unlike previous research which relied upon conventional unit root tests to determine if per capita real income in each country converge toward the real per capita income of a benchmark level, we employ recently introduced quantile unit root testing procedure which also accounts for multiple and unknown structural breaks via a Fourier expansion series. Our results indicate that the negative shocks due to World wars I and II and/or financial crises have transitory effects in countries such as Japan and Germany, while in other countries like Italy and France they have permanent effects.
Keywords: Convergence; Quantile unit root test; Fourier expansion; OECD (search for similar items in EconPapers)
JEL-codes: E01 E25 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: Re-examination of the convergence hypothesis among OECD countries: Evidence from Fourier quantile unit root test (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cii:cepiie:2018-q4-156-6
Access Statistics for this article
More articles in International Economics from CEPII research center Contact information at EDIRC.
Bibliographic data for series maintained by ().