Drivers of structural convergence: Accounting for model uncertainty and reverse causality

Objective: The objective of the article is the examination of factors that affect structural convergence and assessing their robustness. Research Design & Methods: Determinants of structural similarity are examined using the Bayesian model averaging with dilution prior to establishing robust drivers in the long run. The short-run analysis is conducted using Bayesian model averaging within a dynamic panel framework with weakly exogenous regressors.