Discussion Paper

No. 2016-45 | November 10, 2016
Testing the Convergence Hypothesis for OECD Countries: A Reappraisal

Abstract

This paper reviews the results of a number of empirical studies of convergence among the OECD countries and discusses some limitations of these works. Moreover, the paper tries to deal with these limitations by presenting a new and more appropriate methodology: quantile regressions. The results obtained with this specification support the view that, even among the OECD countries, there are different clusters. The parameter representing the convergence hypothesis, despite being negative in every case, is higher in value and more significant as we advance to higher quantiles. These outcomes reveal a faster convergence between the countries that belong to the upper quantiles. Moreover, 1960–1970 is highlighted as the period in which convergence was more intense.

Data Set

  • Data.tab
    [text/tab-separated-values, 22K]

JEL Classification:

C32, O11

Assessment

  • Downloads: 556

Links

Cite As

Maria Dolores Gadea Rivas and Isabel Sanz Villarroya (2016). Testing the Convergence Hypothesis for OECD Countries: A Reappraisal. Economics Discussion Papers, No 2016-45, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2016-45


Comments and Questions


Anonymous - Referee Report 1
December 07, 2016 - 08:51

see attached file


Lola Gadea and Isabel Sanz - Reply to Referee Report 1
December 20, 2016 - 08:02

see attached file


Anonymous - Referee Report 2
February 06, 2017 - 09:01

see attached file


Lola Gadea and Isabel Sanz - Reply to Referee Report 2
February 08, 2017 - 09:25

Thank you so much for the comments. We agree with all of them and we will implement them in the new version. In particular, we believe it is important to clarify the content of the second comment.In addition, we will review the English in section 2 to make it easier ...[more]

... to understand.