Testing for Stochastic and Beta-convergence in Latin American Countries

Diego Escobari

MPRA Paper from University Library of Munich, Germany

Abstract: This paper uses time-series data from nineteen Latin American countries and the U.S. to test for income convergence using two existing definitions of convergence and a new testable definition of β-convergence. Only Dominican Republic and Paraguay were found to pair-wise converge according to the Bernard and Durlauf (1995) definition. More evidence of stochastic convergence exists when allowing for structural breaks using the two-break minimum LM unit root of Lee and Strazicich (2003). The results show greater evidence of convergence within Central America than within South America. Dominican Republic is the only country that complies with the neoclassical conditions of income convergence.

Keywords: Economic growth; Convergence; Latin America; Time-series (search for similar items in EconPapers)
JEL-codes: C22 C52 O40 O54 (search for similar items in EconPapers)
Date: 2011-05
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Citations: View citations in EconPapers (7)

Published in Applied Econometrics and International Development 2.11(2011): pp. 123-138

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Related works:
Journal Article: Testing for Stochastic and Beta-convergence in Latin American Countries (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36741

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