The convergence hypothesis fits the data only when the factors that affect growth are held equal across countries. These factors include all of the following EXCEPT:

Question

Quizplus · Accepted Answer

GDP per capita is the variable being used to measure economic growth and cannot be held constant across countries, as it is the very concept being examined for convergence. The other factors - education, infrastructure, favorable policies and institutions - can be held equal across countries to test the convergence hypothesis.

The Convergence Hypothesis Fits the Data Only When the Factors