The paper begins by considering different definitions of convergence and their correspondence to various econometric methodologies. This multiplicity has resulted in a wide array of results. However, there is broad support for the hypothesis of conditional convergence, which is one of the key implications of neoclassical growth theory based on diminishing returns. But, consensus regarding values of convergence rate and elasticity of output with respect to capital remains elusive. There are also problems of interpretation because some variants of new, endogenous growth theories have convergence implication too.
More research needs to be done on dynamics of steady state determinants.
Only such research can help better explain many concrete aspects of convergence results. Click on the paper title to download the paper and the figure. Click here to download Adobe Acrobat Reader .