The convergence hypothesis suggests that, all else equal, poor countries grow more rapidly than rich countries.

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The convergence hypothesis states that poorer countries have the potential to grow more quickly than richer countries because of various factors such as lower labor costs, cheaper access to raw materials, and easier adoption of new technologies. As a result, countries with lower levels of economic development have a tendency to catch up with higher-income countries over time, resulting in convergence of their level of economic development.

The Convergence Hypothesis Suggests That, All Else Equal, Poor Countries