Convergence in Sub-Saharan Africa : a nonstationary panel data approach
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Date
Authors
McCoskey, Suzanne K.
Journal Title
Journal ISSN
Volume Title
Publisher
Taylor & Francis
Abstract
Given the development of time series econometrics and nonstationary data analysis, St. Aubyn (Empirical Economics, 24, 23-44, 1999) demonstrates a new paradigm for testing income convergence, or better defined, income stability, namely testing the stationarity of pair-wise income differentials. In this paper, a panel data set of Sub-Saharan African countries is constructed and panel cointegration and unit root tests are used to investigate the convergence properties of incomes and standards of living within Africa. Overall, little evidence is found to substantiate claims of convergence across Africa, although in some cases, smaller convergence clubs within Africa may be found. In addition the use of nonstationary panel data techniques is proposed for the testing and establishing of coherent convergence clubs.
Description
Keywords
Econometrics, Convergence (Economics), Time-series analysis, Income, Data analysis, Cost and standard of living, Economic conditions, Sub-Saharan Africa
Sustainable Development Goals
Citation
McCoskey, SK 2002, 'Convergence in Sub-Saharan Africa: a nonstationary panel data approach', Applied Economics, vol. 34, no. 7, pp. 819-829. [http://www.tandf.co.uk/journals/Routledge/00036846.html]