Real convergence in per capita output and growth in Eurozone: a time-series approach

• Author(s): Pinto, Gonçalo Antonio Nogueira de Sousa
• Date: 2016
• Persistent ID: http://hdl.handle.net/10362/16517
• Origin: Repositório Institucional da UNL
• Subject(s): Convergence; Economic growth; Stationarity; Persistence change; Domínio/Área Científica::Ciências Sociais::Economia e Gestão
• Document Type: Master thesis
• Language: English
• Advisor(s): Rodrigues, Paulo Manuel Marques
• Contributor(s): RUN

Description

The real convergence hypothesis has spurred a myriad of empirical tests and approaches in the economic literature. This Work Project intends to test for real output and growth convergence in all N(N-1)/2 possible pairs of output and output growth gaps of 14 Eurozone countries. This paper follows a time-series approach, as it tests for the presence of unit roots and persistence changes in the above mentioned pairs of output gaps, as well as for the existence of growth convergence with autoregressive models. Overall, significantly greater evidence has been found to support growth convergence rather than output convergence in our sample.