Worldwide Growth Convergence in the New Millennium: An Empirical InvestigationLawrence J. Gomes ()
Eurasian Journal of Economics and Finance, 2015, vol. 3, issue 3, 17-24 Abstract: Economic growth is an important ingredient for reducing poverty and achieving the Millennium Development Goals proposed by United Nations in 2000. Meeting these goals by the proposed 2015 target data depends on the ability of poor nations to grow their economies and improve their standards of living. Neoclassical and new growth theory suggests that there should be a negative relationship between a nation’s initial income and subsequent growth giving rise to either absolute convergence (income levels of all nations converge over time) or conditional convergence (each nation converges to its unique steady-state income level). Using the most recent (2000-2013) World Bank data and cross-country regression techniques, I evaluated whether convergence has been occurring in the world in the last decade. My results showed a robust negative relationship between starting income level and subsequent growth. Savings and education were also associated with growth whereas trade was not. Overall, these results support the notion of convergence which is an encouraging finding as the world approaches the 2015 post-development agenda. Keywords: Economic Growth; Convergence; Millennium Development Goals (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ejn:ejefjr:v:3:y:2015:i:3:p:17-24 Access Statistics for this article Eurasian Journal of Economics and Finance is currently edited by Xuan Vinh Vo More articles in Eurasian Journal of Economics and Finance from Eurasian Publications |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
Örebro University School of Business.