Question 15.11

2. Consider Figure 15-9, panel (b). Based on the data there, which regions support the convergence hypothesis? Which do not? Explain.

The regions of East Asia, Western Europe, and the United States support the convergence hypothesis because a comparison among them shows that the growth rate of real GDP per capita falls as real GDP per capita rises. Eastern Europe, West Asia, Latin America, and Africa do not support the hypothesis because they all have much lower real GDP per capita than the United States but have either approximately the same growth rate (West Asia and Eastern Europe) or a lower growth rate (Africa and Latin America).