Theory, History and Evidence of Economic Convergence in Latin America
Research Report
Theory, History and Evidence of Economic Convergence in Latin America
Paola Andrea Barrientos Quiroga
Copyright Date: Dec. 1, 2007
Published by: Instituto de Estudios Avanzados en Desarrollo (INESAD)
Pages: 125
OPEN ACCESS
https://www.jstor.org/stable/resrep00574
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  1. Front Matter
    Front Matter (pp. i-iv)
  2. Table of Contents
    Table of Contents (pp. v-x)
  3. Chapter 1 Introduction
    Chapter 1 Introduction (pp. 1-5)

    The economic convergence term is used when two or more economies tend to reach a similar level of development and wealth. It is a topic that has been studied broadly by economists. On the one hand the study of economic convergence is used in the debate between the different theories of economic growth. The debate is usually between the neoclassical, endogenous and distribution dynamics models. The neoclassical models argue for economic convergence between similar economies, the endogenous models for no convergence at all, and the distribution dynamics models for economic convergence depending on how economies interact over time.

    On the...

  4. Chapter 2 Theory of Convergence
    Chapter 2 Theory of Convergence (pp. 6-20)

    This chapter introduces in detail, the theoretical growth model that will be used in the further estimations of convergence and compares it to other models that also study convergence. The purpose of this chapter is to make clear all concepts of convergence with an emphasis on those concepts that are used in this study.

    The chapter contains four sections. The first section specifies the basic foundations of a neoclassical growth model (NGM), used in Barro and Sala-i-Martin (2004), which is based on the growth model of Ramsey (1928) and optimal growth model of Solow (1956). Furthermore, it discusses the differences...

  5. Chapter 3 Empirical Literature
    Chapter 3 Empirical Literature (pp. 21-27)

    This chapter presents a review of previous empirical research on convergence. The purpose of the chapter is to summarize the main results found in world wide studies and specially in LA.

    The chapter has three sections. The first explains about the usual methodology used to test convergence and discusses the "typical" values found for the speed of convergence in different samples. The second section is focused on the LA case. The last section summarizes the main findings.

    In general, empirical research about convergence has focused on the conditional convergence concept rather than the absolute, given that the latter is rejected...

  6. Chapter 4 Methodology
    Chapter 4 Methodology (pp. 28-38)

    The preceding chapters showed the theoretical background of convergence and the empirical application. This chapter presents and discusses the methodology to test convergence in LA in a historical context. The purpose of this chapter is to establish the methodology followed to obtain the results in chapter 5, together with its theoretical assumptions and possible obstacles.

    The chapter contains five sections. The first describes the model specification. It examines the equation and the variables to be estimated in order to test for β and σ-convergence. The second details the source of the data, the sample of study, and the calculations done...

  7. Chapter 5 History and Evidence of Convergence in Latin America
    Chapter 5 History and Evidence of Convergence in Latin America (pp. 39-84)

    This chapter analyzes the history and evidence of convergence in LA. The purpose of this chapter is to apply the methodology developed from the theoretical framework and link it to the most important historical facts and data of the LA countries to test for convergence.

    The chapter starts with a general picture of the LA economic performance and its position compared to the most advanced economies especially to its neighbor United States. Then, the chapter illustrates the regional development performance and analyzes the evolution of convergence in 106 years among all LA countries and among the 8LA.

    Later each of...

  8. Chapter 6 Conclusions
    Chapter 6 Conclusions (pp. 85-91)

    The economic convergence term is used when two or more economies tend to reach a similar level of development and wealth. The study of economic convergence is an important topic for economists; besides being useful for the debate between different economic theories, it has practical applications. It addresses inquiries as if the distribution of income between economies has become more equal over the time, if poverty persists, if poor economies are in their way of catching up the rich economies and at what speed, and if rich economies tend to be always rich or the pattern of income-ranking can change....

  9. References
    References (pp. 92-96)
  10. Appendix A Relation between β and σ– convergence
    Appendix A Relation between β and σ– convergence (pp. 97-98)
  11. Appendix B Description of Data
    Appendix B Description of Data (pp. 99-112)
  12. Appendix C Structural Reforms from the 90s
    Appendix C Structural Reforms from the 90s (pp. 113-114)