Time Series Test of Nonlinear Convergence and Transitional Dynamics
Chong, Terence Tai Leung, and Hinich, Melvin J., and Liew, Khim Sen, and Lim, Kian Peng, (2008) Time Series Test of Nonlinear Convergence and Transitional Dynamics. Economics Letters, 100 (3). pp. 337-339. ISSN 01651765
This is the latest version of this item.
Official URL: http://www.elsevier.com/wps/find/journaldescription.cws_home/505574/description#description
Chinese University of Hong Kong
University of Texas at Austin, USA
Universiti Malaysia Sabah. Labuan School of International Business and Finance
A growing number of recent empirical studies reveal that output differentials are nonlinear. This paper revisits the income convergence hypothesis by using the nonlinear unit root test of Kapetanios et al. (2003). The test is applied to OECD countries. Out of the 12 income gaps in which nonlinearity has been detected, two cases of long-run converging and four cases of catching up are found. Our results are complementary to those of Greasley and Oxley (1997) and Bentzen (2005).
Available Versions of this Item
Repository Staff Only: item control page