Test of Growth Convergence Hypothesis Based on Panel Data Analysis

Recent convergency issues in economics on growth are examined through panel data analysis. Taking the recent works by Mankiw, Romer, and Weil(1992) and Islam(1995) as it starting point this study analyzes how these results change with the adoption of the panel data approach. The regression equation used in the study of convergence is reformulated into a dynamic panel model with individual country effects and is estimated by panel data procedures. It hardly seems to say that there exists a reasonable evidence of a rapid convergence considering the time period required for the convergence.