Authors

• Omid Ranjbar ¹
• Zahra (Mila) Elmi ²

¹ Economic Expert in Mazand Co

² Assistant Professor of Economics, Mazandaran University

Abstract

In this paper, we study per capita GDP convergence in D8 countries. We test for convergence hypothesis using two approaches: Time series model (Augmented Dickey Fuller Test), and distribution model (Theil Inequality index and cross sectional variance). The time series model estimation results show that Indonesia, Malaysia, and Turkey converge toward the US. The result of convergence hypothesis test between Iran and other D8 countries shows that convergence has occurred between Iran ,Pakistan and Nigeria. Also, stochastic divergence has occurred between Iran, Pakistan, and Bangladesh. The results of distributive models show that the Inequality has been increasing among D8 countries since 1990. 

Keywords

• Convergence hypothesis
• Solow-Swan neoclassical model
• time series model
• distribution model
• D-8 group