Real convergence in Latin America: a fractionally integrated approach

• Astrid Ayala ^[1] ; Juncal Cuñado Eizaguirre ^[2] ; Luis Alberiko Gil Alaña ^[2]
  1. [1] Universidad Francisco Marroquín

     Universidad Francisco Marroquín

     Guatemala

     
  2. [2] Universidad de Navarra

     Universidad de Navarra

     Pamplona, España

     
• Localización: Applied financial economics, ISSN 0960-3107, Vol. 22, Nº. 19-21, 2012, págs. 1713-1717
• Idioma: inglés
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• Resumen

  • This letter investigates the real convergence of 17 Latin American countries to the US economy for the period 1950 to 2008. We examine the order of integration of real Gross Domestic Product (GDP) per capita differences between the US and each Latin American country. We allow for fractional degrees of differentiation. This approach provides a test for stochastic convergence, which is a necessary condition for real convergence. The results show no evidence of stochastic convergence with respect to the US economy in any of the countries under study.