According to the convergence hypothesis, differences in GDP per capita among countries tends to narrow over time because countries that start with a _____ real GDP per capita tend to have _____ growth rates.

Question

Quizplus · Accepted Answer

The convergence hypothesis suggests that countries with lower real GDP per capita have the potential for faster economic growth due to factors such as access to technology, a larger potential labor force, and the ability to learn from more advanced economies. Therefore, countries that start with a lower real GDP per capita tend to have higher growth rates, leading to a narrowing of the GDP per capita gap between countries over time.

According to the Convergence Hypothesis, Differences in GDP Per Capita