Estimating convergence for Asian economies using dynamic random variable models

This paper analyzes the convergence in per-capita gross domestic product (GDP) among 17 Asian countries over the period 1960-1992. We use a dynamic random variables model that allows both country differences and similarities to enter into the analysis of growth and convergence, and also corrects for heteroskedasticity and serial correlation. We find evidence in favor of regional convergence in these countries, with a rate of convergence of around 2% per year. (C) 2004 Elsevier B.V. All rights reserved.