ECON213 Lecture 7: 213 Mathur_Convergence_intro_and_conclpdf
19 Jun 2016
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Economic growth &conditional convergence: its speed for selected. Key words: growth equation; conditional convergence; speed of conditional convergence; elasticity of output with respect to capital; half life of convergence. The study gives the theoretical justification for the per capita growth equations using solovian model(1956) and its factor accumulation assumptions. The different forms of the per capita growth equation is used to test for "conditional convergence" hypotheses and also work out the speed of conditional convergence for eu, east asian and south asian regions together from 1961-2001. Speed of conditional convergence ranges from 0. 2 % in an year to 22%. Countries that are poor relative to their own steady state do tend to grow more rapidly. It does not mean that all countries in the world are converging to the same steady state , only that they are converging to their own steady states(conditional convergence)
