Cross-country Convergence and Growth: Evidence from Nonparametric and Semiparametric Analysis

This article studies the absolute and conditional convergence of real GDP per capita among 164 world economies over the sample period of 1970-2006. The data-driven model specification tests justify the use of nonparametric and semiparametric models. The estimation results show that control variables play a negative/positive channel effect in the growth convergence for poor/developed economies. The absolute convergence hypothesis tends to hold only for the economies with low development levels, but the conditional convergence hypothesis tends to hold for all the economies.