Excerpt

Convergence and Modernization. Robert Barro. August 2014. Paper. "In a panel of countries since 1960, the estimated convergence rate for per capita GDP is around 1.7% per year, conditional on an array of explanatory variables that hold constant countries’ long-run characteristics. The introduction of country fixed effects generates a much higher—and, I argue, misleading—convergence rate. In a longer time frame—28 countries with GDP data starting between 1870 and 1896—estimation with country fixed effects is more appropriate, and the estimated convergence rate is around 2.6% per year." Link