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
Additional contact information
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

Abstract: 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: F33 G15 O47 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2014-02
New Economics Papers: this item is included in nep-cba, nep-fdg and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.aeefi.com/RePEc/pdf/defi14-06.pdf (application/pdf)

Related works:
Journal Article: A contribution to the empirics of convergence in real GDP growth: the role of financial crises and exchange-rate regimes (2016)
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: https://EconPapers.repec.org/RePEc:aee:wpaper:1406

Access Statistics for this paper

More papers in Working Papers from Asociación Española de Economía y Finanzas Internacionales Contact information at EDIRC.
Bibliographic data for series maintained by Luis Miguel del Corral Cuervo ().