Theoretical and Applied Economics
No. 12 / 2013 (589)
Does convergence of incomes still exist among developed economies? Time series evidence in G7 countries
Multimedia University Malaysia, Malaysia
Abstract. In this paper, we examine the presence of convergence of real per capita incomes in G7 countries for the period of 1870-2008, using the group average and pairwise approach. Lee and Strazicich (2003, 2004) unit root tests that provide for structural break(s) are utilised to verify incidence of stochastic convergence, a necessary condition for conditional convergence, while Carlino and Mills (1993) method is employed to confirm the existence of β-convergence, a sufficient requirement for conditional convergence. Among the possible 21 pairwise stochastic convergence cases, we observe nine pairwise stochastic convergence cases, with Japan as the only country not to have stochastic convergence with any of the G7 countries. Although Germany, France and the US stochastically converge towards the G7 average, only the US conditionally converges to the average of G7 countries.
Contents
The impact of oil prices on sectoral returns: an empirical analysis from Borsa Istanbul
Aspects on the perception of young people regarding balneotherapy tourism in Romania
Model of analysis of the correlation between the population and the labor force market
Does convergence of incomes still exist among developed economies? Time series evidence in G7 countries
Analysis of the correlation between the evolution of the consumer loans and the evolution of household income in Romania
Exploring the determinants of the productivity of indian microfinance institutions
Fair value hedging, between opportunity and necessity
The VAT encashment system’s impact on return on invested capitals. Romania’s case
Regional dimension on competitiveness in the postcrisis period. Urban policy in Europe
Intangible assets as a source of competitiveness in the post-crisis economy. The role of brands