Niveau: Supérieur, Master
Testing Convergence : A Panel Data Approach Guillaume Gaulier?, Christophe Hurlinyand Philippe Jean-Pierrezx May 1999 Abstract This paper brie‡y presents new empirical tests of the convergence hypothesis based on panel data. We apply a modi…ed Evans and Karras (1996) testing procedure to three samples (Europe, OECD and World). We propose a nested tests procedure to characterize various convergence processes : absolute or conditional, with or without a common speed of conver- gence. In the conditional convergence context, we are particularly concerned with the information included in individual e?ects. We …nd evidence supporting the existence of an absolute and common con- vergence process for per capita GDP in the European Union sample (1960-1990). As concerns the OECD sample, structural disparities imply only a conditional convergence process occurring at country-speci…c speeds. For our World sample (86 countries) there is no convergence process at all. For OECD countries, a …rst study of …xed e?ects is proposed. It shows that only the private and public investment ratios are signi…cantly linked to those unobservable structural disparities. ? Mots clés : Convergence, Tests de racine unitaire, Panel. ? Keywords : Convergence, Unit root tests, Panel. ? Classi…cation J.E.L : C12, C21, O1, O11. ?M.A.D. E-Mail Address : gaulier@univ-paris1.
- individual e?ects
- testing convergence
- cross sectional
- convergence
- convergence hypothesis using
- dickey-fuller's test
- test procedure
- convergence hypothesis
- monte-carlo simulation