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The Convergence Hypothesis: History, Theory, and Evidence

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  • Farhad Rassekh

Abstract

The hypothesis that per capita output converges across economies over time represents one of the oldest controversies in economics. This essay surveys the history and development of the hypothesis, focusing particularly on its vast literature since the mid-1980s. A summary of empirical analyses, econometric issues, and various tests of the convergence hypothesis are also presented. Moreover, the essay analyzes the implications of the hypothesis for economic growth, especially as it relates to underdeveloped economies. Copyright Kluwer Academic Publishers 1998

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  • Farhad Rassekh, 1998. "The Convergence Hypothesis: History, Theory, and Evidence," Open Economies Review, Springer, vol. 9(1), pages 85-105, January.
    • Handle: RePEc:kap:openec:v:9:y:1998:i:1:p:85-105
    DOI: 10.1023/A:1008279323832
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    14. Andrén, Niclas & Oxelheim, Lars, 2006. "Producer Prices in the Transition to a Common Currency," Working Paper Series 668, Research Institute of Industrial Economics.
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