Public Choice

, Volume 87, Issue 3, pp 207–228

Institutions and the convergence hypothesis: The cross-national evidence

  • Steve Knack
Article

DOI: 10.1007/BF00118645

Cite this article as:
Knack, S. Public Choice (1996) 87: 207. doi:10.1007/BF00118645

Abstract

DeLong and others have shown that cross-country convergence in per capita incomes is limited to samples of currently-industrialized nations, or universal-literacy nations. In particular, income dispersion has failed to decline in groups of ex ante rich nations. This study finds strong convergence in per capita incomes among nations with institutions (namely secure property rights) conducive to saving, investing, and producing. Incomes are shown to converge even within ex ante rich samples when measures of institutional quality are held constant.

Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Steve Knack
    • 1
  1. 1.American University, School of Public Affairs and Center for Institutional Reform and the Informal SectorUniversity of MarylandCollege Park