SHERP

Regional Income Convergence : Evidence from Panel Unit Root Tests

Cited 0 time in webofscience Cited 0 time in scopus
Authors
Koo, Jaewoon; Lee, Seungjun
Issue Date
2000
Publisher
Seoul Journal of Economics
Citation
Seoul Journal of Economics 13 (No. 4 2000): 459-470
Keywords
income convergence; Panel unit root test
Abstract
This paper investigates convergence of eleven regional incomes in Korea by employing a panel unit root test method proposed by Levin and Lin (1993). To test the robustness of the result, we rely on the method developed by Im, Pesaran, and Shin (1996) as well. Applying individual unit root test to income series of each region, we obtained mixed results such that only three out of eleven regional incomes converge. Panel unit root tests, however, reject the null hypothesis that all the Korean regional incomes do not converge. This empirical finding implies that, in a rapidly growing economy such as Korea, at least some regional incomes have tendency to converge to its own equilibrium level. This result is consistent with the prediction of neoclassical growth theory.
ISSN
1225-0279
Language
English
URI
http://hdl.handle.net/10371/1217
Files in This Item:
Appears in Collections:
College of Social Sciences (사회과학대학)Institute of Economics Research (경제연구소)Seoul Journal of EconomicsSeoul Journal of Economics vol.13(4) (Winter 2000)
  • mendeley

Items in S-Space are protected by copyright, with all rights reserved, unless otherwise indicated.

Browse