2019, Volume 72 - Issue 4
RSS feed citation: At RePEc
Publication date: 04 November 2019
THE SUPPLY CHAIN ECONOMY: HOW FAR DOES IT SPREAD IN SPACE AND TIME?Read the article
DISSECTING THE INPUT-OUTPUT STRUCTURE OF THE GREEK ECONOMY 2005-2010Read the article
TESTING FOR FINANCIAL MARKET INTEGRATION OF THE UAE MARKET WITH THE GLOBAL MARKETRead the article
DOES CORRUPTION HAMPER INWARD FDI IN SOUTH AFRICA FROM OTHER AFRICAN COUNTRIES? A GRAVITY MODEL ANALYSISRead the article
Emmanuel ANORUO, Department of Accounting and Management Information Systems, Coppin State University, Baltimore, Mariland USA
This paper tests for convergence in per capita income among ECOWAS member states. In particular, this paper applies the panel convergence procedure which has the ability to endogenously determine the existence of full convergence and convergence clubs. The study used the dip-test to check the robustness of the results from the panel convergence tests. To gain a better understanding of the issue of per capita income convergence within the community, the study is undertaken in three different time frames including the full, pre- and post-ECOWAS sample periods. The results reject the null hypothesis of full convergence in per capita income among ECOWAS member states during the full and two subsample periods. These results indicate that all of the countries have not converged to a single equilibrium state. However, the results did provide evidence of convergence clubs within ECOWAS member states during the full and two subsample periods. The results from the dip-test corroborate those from the panel convergence test in the sense that the null of hypothesis of full convergence is rejected. The failure to find evidence of full convergence highlights the need for ECOWAS member states to embark on more proactive economic policy coordination, especially in the areas of trade, fiscal and monetary policies.
F36, P44, P45
Income Convergence, Convergence Club, ECOWAS, Dip-Test
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