A TIME-SERIES PERSPECTIVE ON CONVERGENCE - AUSTRALIA, UK AND USA SINCE 1870

Tests of the Convergence Hypothesis or the tendency for per capita inc ome levels to narrow over time, have generally utilized cross-sectiona l data and have usually found conflicting evidence. In this study we u tilize time-series data on Australia UK and USA for the period 1870-19 92, and time-series tests, to consider both 'catching-up' and 'long-ru n convergence'. The paper finds evidence in favour of long-run converg ence in per capita income levels for the UK and Australia for the peri od 1892-1992 and catching-up in the case of UK and USA, and Australia and USA, giving some support for the exogenous approaches to economic growth.