CONTENTS
I. Introduction
Ⅱ. Growth Regression As A Dynamic Panel Data Model
Ⅲ. Dynamic Error Components Model
1. The Importance of the Initial
Observations in Dynamic Error Component Model.
2. The Inconsistency of the
LSDV (Least Square Dummy Variable) Estimator.
3. The Unconditional Maximum
Likelihood
Ⅳ. Data, Samples, and Estimation Results
1. Data and Samples
2.
Estimation Results
Ⅴ. Conclusion
ABSTRACT
This paper examines recent convergency issues in economic on growth. Taking
the recent works by M-R-W and Islam as its starting point this paper analyzes
how these results change with the adoption of the panel data approach. The
regression equation used in the study of convergence is reformulated into a
dynamic panel model with individual country effects and is estimated by the
panel data procedures. It hardly seems to say that there exists a reasonable
evidence of a rapid convergence considering the time period required for the
convergence.
