Convergence Patterns in the World Economy: Exploring the Non-Linearity Hypothesis
Paschalis Arvanitidis and
Papers from Economic and Social Research Institute (ESRI)
The objective of this paper is to question the conventional convergence literature, which bases its findings on the use of linear regression models. With the use of quadratic WLS regression analysis we show that a number of indicators of economic performance follow a pattern of change that is in essence non-linear. Our results indicate the formation of two clubs at the world scale: A convergence club that includes countries with a low to mediumhigh level of development and a divergence club including countries with a medium-high to very high levels of development. After a critical threshold the forces of divergence at the world scale dominate and the most dynamic countries eventually grow faster. Undoubtedly, the formation of a diverging leaders club and a further increase in world level development gap has serious implications for theory and policy.
Pages: 24 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Journal Article: Convergence patterns in the world economy: exploring the nonlinearity hypothesis (2011)
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:esr:wpaper:dynreg32
Access Statistics for this paper
More papers in Papers from Economic and Social Research Institute (ESRI) Contact information at EDIRC.
Bibliographic data for series maintained by Sarah Burns ().