Unit roots in output, an exponential 2 per cent rate of convergence and no change in the underlying dynamics of output … (conditional and unconditional) convergence suit first step approximation. We show both theoretically and empirically how the … uniform 2 per cent rate of convergence repeatedly found in the empirical literature is the outcome of an underlying parameter …

This paper analyses banking convergence, measured through the ratios of deposits and loans to GDP, across 65 countries …, compares it with per capita income convergence, and tests its effect on real convergence. The focus of the paper is the group … convergence among these countries with that reached by other 17 potential convergence clubs around the world (including the EU-27 …