Publication Date

January 2004

Publication Details

Chowdhury, K, Convergence of Per Capita GDP Across SAARC Countries, Working Paper 04-07, Department of Economics, University of Wollongong, 2004.


In this paper we have examined the issue of convergence of per capita GDP across 7 South Asian countries during 1960-2000 using World Bank data. Empirical results failed to find evidence of s convergence, b convergence and conditional b (bc) convergence in South Asia. The reasons for non-convergence of per capita GDP can be explained by low and falling volume of intra-country trade, weak governance and low level of growth achieved by the individual countries. Further, non-convergence can be attributed to explanations provided by endogenous growth models.