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International Output Convergence: Evidence from an AutoCorrelation Function Approach

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  • G Caggiano
  • L Leonida

Abstract

This paper uses an AutoCorrelation Function approach to develop new tests for international output convergence. Using per capita GDP for 15 OECD countries observed over a century, we find that the hypothesis of conditional convergence is unsupported; that, the United States 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.

Suggested Citation

  • G Caggiano & L Leonida, "undated". "International Output Convergence: Evidence from an AutoCorrelation Function Approach," Working Papers 2006_20, Business School - Economics, University of Glasgow.
    • Handle: RePEc:gla:glaewp:2006_20
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    6. Jérôme Creel & Paul Hubert & Fabien Labondance, 2023. "Credit, banking fragility, and economic performance," Oxford Economic Papers, Oxford University Press, vol. 75(2), pages 553-573.
    7. Christopoulos Dimitris K & Leon-Ledesma Miguel A., 2011. "International Output Convergence, Breaks, and Asymmetric Adjustment," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 15(3), pages 1-33, May.
    8. Filippo Ferroni & Benjamin Klaus, 2015. "Euro Area business cycles in turbulent times: convergence or decoupling?," Applied Economics, Taylor & Francis Journals, vol. 47(34-35), pages 3791-3815, July.
    9. BRIDA, Juan Gabriel & GARRIDo, Nicolas & MUREDDU, Francesco, 2014. "Club Performance Dynamics At Italian Regional Level," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 14(1), pages 47-68.
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    11. Qunxi Kong & Rongrong Li & Y. Ni & Dan Peng, 2022. "Does China’s green economic recovery generate a spatial convergence trend: an explanation using agglomeration effects and fiscal instruments," Economic Change and Restructuring, Springer, vol. 55(4), pages 2499-2526, November.
    12. Leone Leonida, 2024. "Visualizing Convergence Dynamics across Regions and States: h -Convergence," Mathematics, MDPI, vol. 12(2), pages 1-17, January.
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    14. Lanh Tran & Ba Chu & Chunfeng Huang & Kim P. Huynh, 2014. "Adaptive permutation tests for serial independence," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 68(3), pages 183-208, August.
    15. Kwon, Yujin & Park, Sung Y., 2023. "Modeling an early warning system for household debt risk in Korea: A simple deep learning approach," Journal of Asian Economics, Elsevier, vol. 84(C).
    16. Valadkhani, Abbas & Smyth, Russell, 2015. "Switching and asymmetric behaviour of the Okun coefficient in the US: Evidence for the 1948–2015 period," Economic Modelling, Elsevier, vol. 50(C), pages 281-290.
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    19. Giovanni Caggiano & Efrem Castelnuovo, 2008. "Long Memory and Non-Linearities in International Inflation," "Marco Fanno" Working Papers 0076, Dipartimento di Scienze Economiche "Marco Fanno".

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    More about this item

    Keywords

    Autocorrelation Function; Convergence; Neoclassical Growth Model;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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