A contribution to the empirics of convergence in real GDP growth: the role of financial crises and exchange-rate regimes

C-Tier
Journal: Applied Economics
Year: 2016
Volume: 48
Issue: 23
Pages: 2156-2169

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper investigates the convergence in real gross domestic product growth focusing on the impact of financial crises (i.e. banking crises, currency crises and debt crises) and nominal exchange-rate regimes (i.e. fixed, intermediate and flexible) on convergence. To that end, we compute four convergence indicators (<italic>&#x3c3;</italic>-convergence, <italic>&#x3b3;</italic>-convergence, absolute <italic>&#x3b2;</italic>-convergence and conditional <italic>&#x3b2;</italic>-convergence) for 163 countries classified into four income groups during the period 1970--2011. The results suggest that (i) there is evidence in favour of <italic>&#x3c3;</italic>-convergence and <italic>&#x3b3;</italic>-convergence only for high-income countries; (ii) absolute and conditional <italic>&#x3b2;</italic>-convergence are present in each of the four income groups of the countries under study; (iii) exchange-rate regimes seem to play some role in upper-middle and lower-middle-income countries; and (iv) financial crises have a negative and significant impact on GDP growth independently of the income level of the countries.

Technical Details

RePEc Handle
repec:taf:applec:v:48:y:2016:i:23:p:2156-2169
Journal Field
General
Author Count
2
Added to Database
2026-01-29