A Nordic convergence club?

Tests of the Convergence Hypothesis, or the tendency for per capita income levels to narrow over time, have generally utilized cross-sectional data fr om a wide range of disparate countries and resulted in conflicting evidence . Using modern time series tests we find evidence of a Nordic Convergence C lub comprising Sweden, Denmark and Finland. It excludes Norway which overta kes Sweden in the 1970s showing no tendency to reversion.