Conditional convergence refers to the tendency for:
A) poorer countries to grow faster than richer countries,but only if they receive sufficient foreign investment.
B) richer countries to grow faster than poorer countries given similar steady-state capital stocks,so the poor countries never catch up with the rich countries.
C) poorer countries to grow faster than richer countries given similar steady-state capital stocks,but the poor countries will never catch up with the rich countries.
D) countries with similar steady-state levels of output to grow faster when they're poor than when they're rich until their per capita GDP levels converge.

Question

Quizplus · Accepted Answer

Conditional convergence refers to the phenomenon where countries with similar steady-state levels of output grow at different rates depending on their initial levels of per capita GDP, with poorer countries growing faster than richer ones until their per capita GDP levels converge, assuming they have similar savings rates, population growth rates, and access to technology.

Conditional Convergence Refers to the Tendency For