conditional convergence


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Related to conditional convergence: absolute convergence

conditional convergence

n.
Convergence of an infinite series that lacks absolute convergence, such as 1/2 + 1/3 + 1/4 ....
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In addition, the failure of the regressions to capture the humped pattern results in the conditional convergence results [2; 18]: the regressions tend to under-predict the growth rates for middle income countries and over-predict for high income countries, and the resulting positive/negative residuals for middle/high income countries generate negative correlations between the growth rate and income per capita.
In the column "Model," the letter C indicates that the hypothesis of absolute convergence cannot be statistically accepted and the conditional convergence model specification (1) has been estimated according to Kiviet estimator.
Conditional convergence requires that the economies are assumed to move towards their own steady states.
climate, political institutions, education levels), while conditional convergence implies that these factors play a role and must also be accounted for if convergence is to be identified.
However, the data did support conditional convergence, which implies that different regions followed independent growth paths.
Barro and Sala-i-Martin (1995) and Mankiw, Romer and Weil (1992) cover the topic of income convergence in detail, providing evidence of both unconditional and conditional convergence.
Under the assumption that some of the structural parameters in equations 1 and 2 are different for the economies under consideration, conditional convergence takes place.
Differently, testing for the conditional convergence hypothesis by the panel data approach suggests support for of conditional b-convergence over the periods 1979-1988, 1998-2007 and the entire period, as shown in Table 7.
Unconditional convergence implies that the countries/regions converge to a common steady state while the conditional convergence implies that the countries/regions converge to their own steady state.
As is well-known, this dynamics is characterized by conditional convergence, due to the property of decreasing returns to capital inputs in the production function.
Third, regardless of the econometric method employed to account for the individual effect (or for endogeneity of the set of explanatory variables), the estimated equation is consistent with the existence of a process of conditional convergence.
The extent that it was conditional convergence that drove growth, as opposed to just adopting the appropriate institutions, is not clear.

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