Not quite there yet

Most people who have taken a Principles of Economics 101 course are familiar with the convergence hypothesis, i.e. that poorer economies in terms of per capita should grow at faster rates than wealthier economies eventually resulting in a convergence. Few would probably defend the absolute version of the convergence hypothesis today, but if there is somebody who does, the following graph will at least show that we are not quite there yet.

Image

(Feel free to use this figure for your own purposes, but please do not forget to mention this blog as the source.)

Simon Hedlin

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