Τesting convergence and divergence: the data from Greece

Stavros Mavroudeas () and Costas Siriopoulos

MPRA Paper from University Library of Munich, Germany

Abstract: The convergence hypothesis is a popular tenet in modern discussions in macroeconomics and regional economics. It derives from the very fundamental properties of the neoclassical single-sector growth model, and its assumption of diminishing returns to scale. Following this theoretical framework a number of empirical tests (σ or unconditional β or conditional β-convergence) has been developed. This paper tests unconditional and conditional β-convergence for the Greek economy. Three issues are being considered: (i)if there is regional convergence, (ii) if there is a North-Southern divide, (iii) if Greece is converging with the other economies taking part in the European integration project. Our empirical results reject the convergence hypothesis in all cases. These findings, together with similar findings for many other economies, pose significant problems for the theoretical assumptions of the neoclassical growth model with exogenous technical change.

Keywords: convergence; neoclassical theory; Greece (search for similar items in EconPapers)
JEL-codes: R11 R15 (search for similar items in EconPapers)
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/17170/1/MPRA_paper_17170.pdf original version (application/pdf)

Related works:
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:pra:mprapa:17170

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().