Abstract

In this paper we reexamined the study done in King and Ramlogan-Dobson (2011) as well as Chong et al. (2008) by investigating the nonlinear convergence among the G16 countries using alternative methodology. We find that the results are sensitive to the method of analysis even after allowing for structural breaks. With semi-parametric model only six (6) cases of convergence were identified and eight (8) cases when we use nonlinear Fourier unit root test. With relative transition model all the sixteen (16) countries exhibit convergence with United States and Norway converging a little above group average.

This work is licensed under a Creative Commons Attribution 4.0 License.