International output convergence: Evidence from an autocorrelation function approach

Giovanni Caggiano, Leone Leonida

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13 Citations (Scopus)

Abstract

This paper uses an autocorrelation function (ACF) approach to develop a new testing procedure for international output convergence. We define convergence in terms of sample ACFs of detrended output per capita, and construct an inference set-up based on resampling and subsampling techniques for dependent data. Using per capita GDP for 15 OECD countries observed over a century, we find that the hypothesis of conditional convergence is unsupported; that, the USA apart, the linearized neoclassical growth model fails to replicate the transitional dynamics of OECD economies; and that these economies do not behave like a club.

Original languageEnglish
Pages (from-to)139-162
Number of pages24
JournalJournal of Applied Econometrics
Volume24
Issue number1
DOIs
Publication statusPublished - Jan 2009

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