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Institutions and the Convergence Hypothesis: The Cross-National Evidence

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  • Knack, Steve

Abstract

J. B. DeLong and others have shown that cross-country convergence in per capita incomes is limited to samples of currently-industrialized nations or universal-literacy nations. In particular, income dispersion has failed to decline in groups of ex ante rich nations. This study finds strong convergence in per capita incomes among nations with institutions (namely secure rights) conducive to saving, investing, and producing. Incomes are shown to converge within ex ante rich samples when measures of institutional quality are held constant. Copyright 1996 by Kluwer Academic Publishers

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  • Knack, Steve, 1996. "Institutions and the Convergence Hypothesis: The Cross-National Evidence," Public Choice, Springer, vol. 87(3-4), pages 207-228, June.
    • Handle: RePEc:kap:pubcho:v:87:y:1996:i:3-4:p:207-28
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