Regional Convergence in Chile: New Tests, Old Results

Convergence tests implicitly test the unit root hypothesis for per capita income. Although the statistics do not have critical values under the null hypothesis most papers on this subject use them, with the corresponding problems for inference. This paper determines the existence of convergence in G...

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Autores principales: DUNCAN,ROBERTO, FUENTES,RODRIGO
Lenguaje:English
Publicado: Instituto de Economía, Pontificia Universidad Católica de Chile 2006
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Acceso en línea:http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0717-68212006000100003
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spelling oai:scielo:S0717-682120060001000032006-10-13Regional Convergence in Chile: New Tests, Old ResultsDUNCAN,ROBERTOFUENTES,RODRIGO Convergence Economic Growth Panel Data Unit Root Tests Asymmetries Growth Clubs Convergence tests implicitly test the unit root hypothesis for per capita income. Although the statistics do not have critical values under the null hypothesis most papers on this subject use them, with the corresponding problems for inference. This paper determines the existence of convergence in GDP levels and income across the regions of Chile using the traditional tests and also recent unit root tests for panel data that allow for correct inferences. We also analyze convergence in dispersion, evaluating the presence of asymmetries or the formation of regional "clubs" using nonparametric tests. Our main conclusions are: (1) the evidence supports the hypothesis of absolute b convergence in both per capita GDP and income; (2) the convergence rate is higher for income than for GDP; (3) the conditional convergence rate increases when we control for the share of mining on the regional productive structure; (4) the data do not support the existence of convergence clubs; and (5) there is no clear evidence of s convergenceinfo:eu-repo/semantics/openAccessInstituto de Economía, Pontificia Universidad Católica de ChileCuadernos de economía v.43 n.127 20062006-05-01text/htmlhttp://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0717-68212006000100003en10.4067/S0717-68212006000100003
institution Scielo Chile
collection Scielo Chile
language English
topic Convergence
Economic Growth
Panel Data
Unit Root Tests
Asymmetries
Growth Clubs
spellingShingle Convergence
Economic Growth
Panel Data
Unit Root Tests
Asymmetries
Growth Clubs
DUNCAN,ROBERTO
FUENTES,RODRIGO
Regional Convergence in Chile: New Tests, Old Results
description Convergence tests implicitly test the unit root hypothesis for per capita income. Although the statistics do not have critical values under the null hypothesis most papers on this subject use them, with the corresponding problems for inference. This paper determines the existence of convergence in GDP levels and income across the regions of Chile using the traditional tests and also recent unit root tests for panel data that allow for correct inferences. We also analyze convergence in dispersion, evaluating the presence of asymmetries or the formation of regional "clubs" using nonparametric tests. Our main conclusions are: (1) the evidence supports the hypothesis of absolute b convergence in both per capita GDP and income; (2) the convergence rate is higher for income than for GDP; (3) the conditional convergence rate increases when we control for the share of mining on the regional productive structure; (4) the data do not support the existence of convergence clubs; and (5) there is no clear evidence of s convergence
author DUNCAN,ROBERTO
FUENTES,RODRIGO
author_facet DUNCAN,ROBERTO
FUENTES,RODRIGO
author_sort DUNCAN,ROBERTO
title Regional Convergence in Chile: New Tests, Old Results
title_short Regional Convergence in Chile: New Tests, Old Results
title_full Regional Convergence in Chile: New Tests, Old Results
title_fullStr Regional Convergence in Chile: New Tests, Old Results
title_full_unstemmed Regional Convergence in Chile: New Tests, Old Results
title_sort regional convergence in chile: new tests, old results
publisher Instituto de Economía, Pontificia Universidad Católica de Chile
publishDate 2006
url http://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0717-68212006000100003
work_keys_str_mv AT duncanroberto regionalconvergenceinchilenewtestsoldresults
AT fuentesrodrigo regionalconvergenceinchilenewtestsoldresults
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