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Omid Ranjbar and Zahra (Mila) Elmi
''Analyzing the effect of financial development and trade openness on income convergence''
( 2015, Vol. 35 No.4 )
In this paper, we analyze the effects of financial development and trade openness on income convergence via the application of pooled fractional probit model that developed by Papke and Wooldridge (2008). Our results confirm the hypothesis that trade openness accelerate the income convergence. Also we found financial development acts as a convergence factor only for financially middle advanced countries.
Keywords: Convergence, Fractional response, Probit, Trade openness, Financial development
JEL: C2 - Single Equation Models; Single Variables: General
O4 - Economic Growth and Aggregate Productivity: General
Manuscript Received : Jul 29 2015 Manuscript Accepted : Dec 13 2015

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