ABSTRACT
Many tests have been performed of both absolute and conditional convergence hypothesis using cross-sectional, time series and pooled data from different nations. The bulk of the studies examine convergence at the national level, but there are a few studies which have sought to test different versions of the hypothesis of the convergence hypothesis employing sub-national data. The results for the United States show β -convergence in a basic neoclassical model and in two more elaborate models using control variables that include employment sector composition, and regional dummies. Other neoclassical studies have used proxies to test for the presence of technology augmentation or the deleterious effect of government expenditure, it could better be allocated by market processes. The paucity of empirical research and significant findings has been noted by Pack. While endogenous growth theory has a clear intuitive appeal, empirical research that can be classified as being strictly within the rubric of endogenous growth theory is very limited.
