Suppose that all economies have the following production function Y = K1/2L1/2:
A developed country has a saving rate of 28% and a population growth rate of 1% per year. A less developed country has a saving rate of 10% and a population growth rate of 4% per year. In both countries, total factor productivity grows at 2% per year, and capital depreciates at 4% per year. Use the information in the question and the Solow model to explain whether it is likely that per capita GDP in these two countries will converge.