The convergence hypothesis fits the data only when the factors that affect growth are held equal across countries. These factors do NOT include:

Question

Quizplus · Accepted Answer

GDP per capita is actually one of the factors that affects growth and is taken into account when analyzing the convergence hypothesis. Therefore, it is not one of the factors that needs to be held equal across countries for the hypothesis to hold. Education, infrastructure, and favorable policies and institutions are factors that also affect growth and need to be held equal for the hypothesis to hold.

The Convergence Hypothesis Fits the Data Only When the Factors