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The hypothesis that per capita output converges across economies over time represents one of the oldest controversies in economics. This essay surveys the history and development of the hypothesis, focusing particularly on its vast literature since the mid-1980s. A summary of empirical analyses, econometric issues, and various tests of the convergence hypothesis are also presented. Moreover, the essay analyzes the implications of the hypothesis for economic growth, especially as it relates to underdeveloped economies.
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Department of Economics, Barney School of Business and Public Administration, University of Hartford, West Hartford, CT, 06117, U.S.A.
Farhad Rassekh
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Rassekh, F. The Convergence Hypothesis: History, Theory, and Evidence. Open Economies Review 9 , 85–105 (1998). https://doi.org/10.1023/A:1008279323832
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Issue Date : January 1998
DOI : https://doi.org/10.1023/A:1008279323832
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