Cross-country output convergence and growth : Evidence from varying coefficient nonparametric method

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

13 Scopus Citations
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Author(s)

  • Kui-Wai Li
  • Xianbo Zhou
  • Zhewen Pan

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)32-41
Journal / PublicationEconomic Modelling
Volume55
Publication statusPublished - 1 Jun 2016

Abstract

This article uses a nonparametric varying coefficient panel data model to study the convergence of real GDP per capita among 120 world economies for the sample period of 1980-2010. The estimates show that the indirect contribution of initial income via the control variables is important. The mediating effect of control variables to affect growth is positive. The conditional speed of convergence is larger than the absolute counterpart at all levels of initial income. The convergence hypothesis does not hold for economies with extremely low level of development. The conclusion is robust for regional subsamples of Europe, Asia, Latin America and Africa.

Research Area(s)

  • Convergence, Growth, Nonparametric, Varying coefficient model