Why Do Rates of Convergence Differ? A Meta-Regression Analysis
University of Nottingham, CREDIT Research Paper No. 03/01
39 Pages Posted: 21 Apr 2003
Date Written: January 2003
Abstract
There have been many tests of the convergence hypothesis yielding many different estimates of B (the speed of convergence). Narrative reviews of the convergence literature hint at possible reasons for the study-to-study variation in the value of B, but such reviews are selective and informal. In contrast, meta-regression analysis provides a more formal and objective review of the literature. It is shown that study design and methodology are important determinants of the reported convergence rate, especially in cross-national studies. There is also evidence of general misspecification in the literature.
Keywords: B-convergence, convergence hypothesis, meta-regression alalysis, neo-classical growth theory
JEL Classification: 04
Suggested Citation: Suggested Citation