Convergence clubs in Latin America

Candelaria Barrios, Esther Flores and M. Ángeles Martínez

Applied Economics Letters, 2019, vol. 26, issue 1, 16-20

Abstract: The aim of this work is to identify convergence clubs in 17 Latin American countries in terms of GDP per capita during the period 1990–2014. To do this, we apply the methodology developed by Phillips-Sul in order to identify the different convergence clubs on the path of growth in the Latin American economy over this period. The empirical results strongly support the existence of convergence clubs, indicating that the Latin American economy consists of four groups, each converging towards its own steady-state path, with two countries being divergent.

Date: 2019
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DOI: 10.1080/13504851.2018.1433288

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