Convergence and the Caribbean

This paper examines the convergence experience of selected Caribbean countries. It examines evidence of reduced dispersion in real per capita income-Sigma convergence-and 'catch up' growth across the group-Beta convergence. Estimation of the Solow-Swan cross-section model for the Caribbean...

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Bibliographic Details
Published in:International review of applied economics 1998-09, Vol.12 (3), p.381-396
Main Authors: Atkins, Fiona, Boyd, Derick
Format: Article
Language:English
Subjects:
Caribbean
Clubs
Data analysis
Econometrics
Economic policy
Economic shock
Endowment
GDP
Gross Domestic Product
Growth models
Growth rates
Human capital
Hypotheses
Income inequality
Per capita
Per capita income
Production functions
Regional development
Statistics
Structural adjustment
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Summary:This paper examines the convergence experience of selected Caribbean countries. It examines evidence of reduced dispersion in real per capita income-Sigma convergence-and 'catch up' growth across the group-Beta convergence. Estimation of the Solow-Swan cross-section model for the Caribbean shows weak evidence of β and σ convergence. However, structural instability and evidence of divergence over the sample period, suggest this convergence to be spurious. Further tests on individual country data showed an absense of steady state convergence for any country over time. Institutional structures and adjustments to economic shocks appear to have been important for the determination of per capita income in the long run.
ISSN:0269-2171
1465-3486
DOI:10.1080/02692179800000014