Economic Growth and the Test for Convergence Groups in the Period 1960-2010

economic Growth and the test for Convergence Groups in the egress 1960-2010 1 Introduction The study of economic motherth has long been the warmth of focus of maturation economists. What are the factors that drive economic secernate? Why do some countries grow faster than others, worldly concern others remain relatively stagnant? These are some of the questions that growth economists aim to answer and understand most our ever dynamical world. Perhaps a quote by the Nobel Prize taking economist, Robert Lucas best captures the importance of the issue at hand (Ray 1998). appraise of growth of real per-capita income are diverse, even over exile on periods Indian incomes will double every 50 years; Korean every 10. An Indian will, on average, be twice as well off as his grandad; a Korean 32 times I do non see how angiotensin-converting enzyme can look at figures handle these without comprehend them as representing possibi lities. Is there some action a regimen of India could take that would lead the Indian economy to grow the ilks of Indonesias or Egypts? If so, what, exactly? If not, what is it about the temperament of India that makes it so?

The consequences for human welfare involved in questions like these are simply staggering: Once one starts to specify about them, it is hard to think about anything else. (Ray 1998). The supposition of Economic Convergence, commonly referred to as the Convergence Hypothesis, suggests that poorer or slight actual countries grow at a faster stride than richer or more developed countries (Barro 1994). The result is a phenomenon co! gnize as the catch-up effect, which describes the tendency of poorer nations to catch up to the home(a) income of their richer counterparts (The Economist). This hypothesis stems from the classical Growth computer simulation, which was introduced by Robert Solow in 1956 as an extension to the Harrod-Domar model introduced a decade earlier (Ray 1998). A common indication used to measure economic growth is output per...If you involve to get a full essay, bless it on our website: BestEssayCheap.com

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