TY  - JOUR
AU  - Helliwell,John F.
AU  - Chung,Alan
TI  - Convergence and Growth Linkages Between North and South
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3948
PY  - 1992
Y2  - January 1992
UR  - http://www.nber.org/papers/w3948
L1  - http://www.nber.org/papers/w3948.pdf
N1  - Author contact info:
John F. Helliwell
Canadian Institute for Advanced Research
and Department of Economics
University of British Columbia
997-1873 East Mall
Vancouver BC V6T 1Z1
CANADA
Tel: 604/822-4953
Fax: 604/822-5915
E-Mail: john.helliwell@ubc.ca

Alan Chung
E-Mail: chungkk@ippfa.com
AB  - Using cross-sectional data for 98 countries for 1960-85, this paper shows that growth of per capita GDP depends negatively on initial income levels, as implied by the convergence hypothesis, as well as on international differences in investment rates in physical and human capital. There is some evidence of slight economies of scale (1.06) among the industrial countries. The evidence in favor of the convergence hypothesis is strongest for the countries of the OECD and Latin America, and weakest for Asia. Growth in Latin America and Africa is lower than elsewhere even after allowing for international differences in initial income levels, scale, schooling and capital investment. Analysis of Solow residuals for the OECD countries (for which capital stock data are available) shows convergence in rates of technical progress, suggesting that convergence of per capita GDPs is not Just a function of differences in investment rates. The linkage between per capita GDP and the real exchange rate is found to be strong for the OECD and Asia, weak for Africa and negative for Latin America.
ER  -