A contribution to the empirics of convergence in real GDP growth: The role of financial crises and exchange-rate regimes
Amalia Morales-Zumaquero () and
Simon Sosvilla-Rivero ()
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Amalia Morales-Zumaquero: Departamento de Teoría e Historia Económica, Facultad de Ciencias Económicas y Empresariales, Universidad de Málaga
No 14-06, Working Papers from Asociación Española de Economía y Finanzas Internacionales
This paper investigates the convergence in real Gross Domestic Product (GDP) growth focusing on the impact of financial crises (i.e. banking crises, currency crises and debt crises) and nominal exchange rate regimes (i.e. fixed, intermediate and flexible) on convergence. To that end, we compute four convergence indicators (σ-convergence, γ- convergence, absolute β-convergence and conditional β-convergence), for 163 countries classified into four income groups during the 1970-2011 period. Results suggest that: (i) There is evidence in favor of σ-convergence and γ-convergence only for high income countries; (ii) absolute and conditional β-convergence are presented in each of the four income groups of countries under study; (iii) exchange-rate regimes seem to play some role in upper-middle and lower-middle income countries; and (iv) financial crises have a negative and significant impact on GDP growth independently of the level of income of countries.
Keywords: Convergence indicators; financial crises; nominal exchange-rate regimes (search for similar items in EconPapers)
JEL-codes: O47 G15 F33 (search for similar items in EconPapers)
Pages: 25 pages
New Economics Papers: this item is included in nep-cba, nep-fdg and nep-opm
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Journal Article: A contribution to the empirics of convergence in real GDP growth: the role of financial crises and exchange-rate regimes (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:aee:wpaper:1406
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