Income Convergence in <scp>A</scp>frican Countries: Evidence from a Stationary Test With Multiple Structural Breaks

Abstract This paper examines the catching‐up (stochastic convergence in real per capita income) hypothesis for 52 A frican countries with respect to the USA . over the 1969‐2011 period, using a highly flexible stationarity test. The empirical results show (i) that all A frican countries experienced at least one break, switching between catching‐up and divergence paths during the sample period; (ii) that structural breaks tend to coincide with political instability, trade liberalisation policies and terms of trade shocks; (iii) that among the 52 A frican countries studied, only five lie on the catching‐up path, while the remaining 47 diverge from the USA . Our results show that the economic performance of A frican countries fall far behind those of the USA and that the economic growth tragedy of Africa continues.