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Article . 2011
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Testing the Conditional Convergence Hypothesis for Pakistan

Authors: Jan, Sajjad Ahmad; Chaudhary, A. R.;

Testing the Conditional Convergence Hypothesis for Pakistan

Abstract

This study investigates for the existence or non-existence of conditional convergence across the provinces of Pakistan. The annual output data from 1973 to 2000 is pooled for the four Pakistani provinces. The cross-sectional specific effects, the time specific effects, the manufacturing output, and the structural variable for aggregate supply or production shocks are used to control the different steady state levels of per capita incomes of thedifferent provinces. The equation for conditional convergence is estimated through generalized least squares (GLS) method, after controlling for the different steady states of the provinces. The result shows that the provinces of Pakistan converge to their own respective steady states with a convergence speed of 11% per annum. At the same time manufacturing output is also statistically significant and positively affects the economic growth in the provinces. However the structural variable is not statistically significant.

Keywords

Provinces of Pakistan, Conditional Convergence, HF1-6182, Provinz, ddc:330, Commerce, Pakistan, Steady State Level of Income, Wirtschaftliche Konvergenz, Nationaleinkommen, Regionalentwicklung, Gross Provincial Product (GPP)

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
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