Are living standards converging?
We re-address the convergence issue that is so prominent in the economic growth literature and present evidence as to what extent there is convergence across measures of living standards, alternative to capita income. The four additional indicators that we use are daily calorie supply, daily protein supply, infant mortality rates, and life expectancy at birth. We present results obtained using three techniques previously considered in growth empirics. These are cross-country regressions, distributional dynamics, and cluster analysis. Our main finding is that convergence in real GDP per capita does not imply convergence in other social indicators. However, the qualitative results for all indicators are the same in the sense that the persistent gap between the rich and poor does not only manifest itself in real GDP per capita but also in living standards.
|Keywords||convergence, growth empirics, per capita selecta, social indicators|
|JEL||General Welfare; Basic Needs; Living Standards; Quality of Life; Happiness (jel I31), Measurement of Economic Growth; Aggregate Productivity (jel O47), Comparative Studies of Countries (jel O57)|
|Persistent URL||dx.doi.org/10.1016/S0954-349X(00)00034-5, hdl.handle.net/1765/2157|
|Journal||Structural Change and Economic Dynamics|
Franses, Ph.H.B.F, & Hobijn, B. (2001). Are living standards converging?. Structural Change and Economic Dynamics, 12(2), 171–200. doi:10.1016/S0954-349X(00)00034-5