An Econometric Analysis of Convergence : Econometric methods applied to the theory of macroeconomics and economic growth

2018

Master's thesis Business Administration BE501 - University of Agder 2018 This master thesis explores the concept of convergence in a macroeconomic perspective and applies econometric methods to economic growth theory. Tests and analysis are performed using a dataset of national accounts from the rich database of The Penn World Tables version 9.0 and the statistical software Stata 15.1. Two sample selections are performed, with observations for 101 and 53 countries from 1970 to 2014. The convergence classifications of β convergence, both absolute and conditional, as well as σ convergence are explained. The concepts of convergence are related to their respective research question. Do poorer e…