Income Convergence toward USA: New Evidences for Latin and South American Countries

Authors

  • Chien-Chiang Lee Department of Finance, National Sun Yat-sen University, Kaohsiung, Taiwan.
  • Omid Ranjbar Department of Economics, Allameh-Tabataba'i University, Tehran, Iran
Abstract:

Abstract In this paper we test two versions of convergence hypothesis namely deterministic or conditional convergence and stochastic or catching up hypothesis using Carrion-i-Silvestre et al. (2005) stationary test. The results show Latin and South American countries (LSA) catching up process toward the USA failed in 1980s and somewhat in 1990s. But in 2000s most of them could lie in convergence path. Dispersion of break dates show that structural breaks in LSA convergence were affected by trade policies, terms of trade shocks and also war. For example, terms of trade shocks due to volatility of primary goods prices such as sugar, copper, cotton, petroleum oil, coffee, bauxite, aluminum, and rice affected the convergence process in LSA countries.

Upgrade to premium to download articles

Sign up to access the full text

Already have an account?login

similar resources

income convergence toward usa: new evidences for latin and south american countries

abstract in this paper we test two versions of convergence hypothesis namely deterministic or conditional convergence and stochastic or catching up hypothesis using carrion-i-silvestre et al. (2005) stationary test. the results show latin and south american countries (lsa) catching up process toward the usa failed in 1980s and somewhat in 1990s. but in 2000s most of them could lie in convergenc...

full text

The Role of Gender Inequalities in Explaining Income Growth, Poverty and Inequality: Evidences from Latin American Countries

This Working Paper investigates the possible link between gender inequalities in the labour market and significant economic outcomes such as income growth, poverty and inequality indicators. Our analysis is based on microsimulations for eight Latin American countries. We consider four aspects of gender inequalities: differences in labour market participation, differences in occupational status,...

full text

A New Approach for Analysing Income Convergence across Countries

In this paper we develop a coherent framework that integrates both traditional measures of -convergence and -convergence within a study of cross-country income dynamics. To do this we exploit the close links that exist between studies of income mobility and studies analysing the progressivity of the tax system. We also develop a welfare interpretation for the concept of -convergence, which d...

full text

Deforestation and credit instability in Latin American countries Deforestation and credit instability in Latin American countries

This paper highlights the link between deforestation and credit instability in Latin American countries which exhibit strong deforestation rates as well as macroeconomic instability that is often rooted in the alternating episodes of credit booms and crunches. Pieces of explanation establishing a causal link between credit instability and deforestation driven by agricultural expansion are put f...

full text

The Effect of Social Spending on Income Inequality: An Analysis for Latin American Countries

Using a panel dataset from 1980 to 2000 this paper analyzes the determinants of income inequality in Latin American countries with special attention paid to education, health, and social security expenditures. I build on previous research by solving for the endogeneity of the social spending variables in the income inequality equation. This study undertakes 2SLS and GMM methods in order to cont...

full text

Toward a Latin American Cancer Observatory

Corresponding author: Eduardo Cazap, MD, PhD, FASCO, Latin American and Caribbean Society of Medical Oncology, Cordoba 2415, Buenos Aires, Argentina; e-mail: [email protected]. Cancer affects more than one million Latin Americans every year. And in tandem with the global trend, its incidence in the region is increasing, led mainly by factors such as urbanization, population aging, and the so-ca...

full text

My Resources

Save resource for easier access later

Save to my library Already added to my library

{@ msg_add @}


Journal title

volume 20  issue 2

pages  141- 162

publication date 2016-04-01

By following a journal you will be notified via email when a new issue of this journal is published.

Hosted on Doprax cloud platform doprax.com

copyright © 2015-2023