Identifier

etd-10272006-144739

Degree

Doctor of Philosophy (PhD)

Department

Economics

Document Type

Dissertation

Abstract

A central issue in the growth literature is whether initial conditions matter for income disparity among nations. If they don't, then countries will converge to a single regime once the structural features of the economies are controlled for. If they do, then countries will converge to multiple regimes even if the structural features are controlled for. This dissertation is designed to investigate whether the world is characterized by a single or multiple regimes. The first paper investigates whether the predictions of a particular multiple-regime model due to Galor and Zeira (1993) are borne out by the data. The baseline analysis is carried out with a sample of 46 countries (for which data are available) during the period 1970-2000. The analysis produces results that are consistent with the model. These results are broadly robust to different model specifications, sample periods, and permutations of alternative control variables. We take these results as evidence in support of the multiple-regime models. The second paper examines whether the conclusions of another multiple-regime model due to Kremer and Chen (2002) are borne out by the data. The baseline analysis is also carried out with a sample of 46 countries during the period 1970-2000. The analysis produces results that are consistent with the model. These results are broadly robust across different human capital differential variables, different sample sizes, and additional control variables. We take these results as evidence in support of the multiple-regime models. The third paper revisits the convergence hypothesis test using a new stochastic dominance method. The baseline analysis is carried out with a sample of 100 countries during the period 1960-2000. Together with the robustness check, the analysis yields results that are consistent with the club convergence hypothesis. We take these results as evidence in support of the multiple-regime models.

Date

2006

Document Availability at the Time of Submission

Release the entire work immediately for access worldwide.

Committee Chair

Chris Papageorgiou, Chris

DOI

10.31390/gradschool_dissertations.1352

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Economics Commons

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