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World Trends: Differences and Similitudes Between Absolute and Conditional Convergence

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The world economic growth and the respective trends of convergence/ divergence are influenced by several factors which make these processes different worldwide in the function of the specific conditions of each context. For example, the Endogenous Growth Theory suggests that the processes of convergence are not unconditional and there is not only one steady state, but there are several steady states and the convergence trends are conditional and depend on the influence of certain variables, specifically those related to human capital. Considering these perspectives, this study aims to assess the processes of conditional convergence worldwide, taking into account data associated with the gross domestic product (GDP) per capita and variables related to human capital. This statistical information was assessed through approaches associated with the sigma and beta convergence and panel data. The insights obtained reveal that, in fact, the indicators related to human capital may play a determinant role in the convergence tendencies in some circumstances and over the period considered

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Econometric models Neoclassical theory Endogenous growth theory

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