Divergence in Per Capita Electric Power Consumption: An African Perspective
14 Pages Posted: 29 Dec 2008
Date Written: December 22, 2008
This paper tests for convergence in relative per capita electric power consumption for 22 African countries, covering the period 1971-2002. Parametric techniques which are regressions and unit root tests are used. Neoclassical convergence hypothesis such as the beta-convergence is rejected while evidence in support of sigma-convergence is obtained. Stochastic convergence is further investigated by applying a battery of time-series and panel unit roots tests. Strong evidence of stochastic divergence is found after controlling for cross-sectional dependence. Finally, non-parametric techniques based on kernels reveal some evidence of club-formation.
Keywords: Convergence, Electric Power Consumption, Panel Unit Root Tests, Distribution Dynamics, Africa
JEL Classification: C23, Q41
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