Among countries with similar steady-state output levels,there is a negative relationship between initial income levels and subsequent growth rates.

Question

Quizplus · Accepted Answer

This is known as the convergence hypothesis, and it suggests that countries with lower initial income levels tend to experience higher growth rates as they catch up to countries with higher initial income levels. This phenomenon has been observed in various empirical studies.

Among Countries with Similar Steady-State Output Levels,there Is a Negative