The fact that countries' GDP per capita does not converge indicates that

Question

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The lack of convergence in GDP per capita suggests that living standards will only converge within groups of countries with similar characteristics, rather than globally. This could be due to differences in factors such as institutional quality, technological innovation, and access to resources, which vary greatly between countries. It does not necessarily indicate a failure of the neoclassical growth model or the superiority of the endogenous growth model. Additionally, convergence can take a long time, but the lack of convergence suggests that it may not happen globally.

The Fact That Countries' GDP Per Capita Does Not Converge