Journal
| Title | Income Convergence and Income Inequality among Country Groups: A Concordance Analysis | |
| Author's Name | Dr. Ismail Saba | |
| ISSN | 0974-7281 | |
| Page(s) | 35-54 | |
| Volume No. | 2 | |
| Issue Month | january 2010 | |
| Keywords | Income Convergence, Concordance, Switching, neo-classical growth model. | |
| Abstract | This study attempts to test the convergence hypothesis using time series of real per capita income based on the ideas of concordance. It employs the model to test empirically for GDP per capita convergence across 6 country groups. The result suggests the presence of switching while there is more ‘strong divergence’ than ‘strong convergence’. That means the country groups broadly representing rich and poor countries are not converging to each other. Income inequalities among these country groups are increasing. The possible reason of differential growth path may be the different rate of capital accumulation and varying structural change in these economies. These results are inconsistent with the predictions of the Solow-Swan neo-classical model. |
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