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Convergence in Large Emerging Economies

Procedia - Social and Behavioral Sciences, ISSN: 1877-0428, Vol: 109, Page: 407-411
2014
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Article Description

This study aims at investigating convergence processes in a number of large emerging economies that have increased their share in world output. We consider an extended version of BRICs: Brazil, Russia, India and China, plus Indonesia, Mexico, South Africa, South Korea and Turkey. Using annual data over the 1950-2010 period and quarterly data for the post-2000 period we test for convergence using various datasets and unit root tests. Unit root tests allowing endogenous break(s) increase the probability of rejecting the null of unit root. The number of countries that have converged in terms of GDP per worker employed is greater than those that have converged in terms of GDP per capita.

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