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Economic growth and club convergence: Is there a neighbour's effect?
, Arfat Ahmad Sofi, Mohammad Younus Bhat
Published in John Wiley and Sons Ltd
The study investigates economic growth and club convergence in a cross-country framework from 1970–1971 to 2014–2015. In particular, we test the club convergence hypothesis through a non-parametric and spatial interaction setting. The kernel density estimate shows a cyclical behaviour of per capita incomes, albeit following a common steady state. The conditional distribution is concentrated around the mean indicating a similar relative position across the heterogeneous countries. The transitional probabilities are strong enough to demonstrate a significant sign of clubbing. On testing the convergence hypothesis, we perceive strong evidence of club convergence across the countries. A persistent spatial dependence is unveiled across the proximities, therefore confirming the neighbour's effects in club formation. The study realizes a need to harmonize the interaction between the countries to improve the conditions for achieving long-run sustained economic growth. © 2021 John Wiley & Sons, Ltd.
About the journal
JournalData powered by TypesetInternational Journal of Finance and Economics
PublisherData powered by TypesetJohn Wiley and Sons Ltd
Open AccessNo