Question: Using the Solow framework, explain the economic forces behind the convergence of output per person. Then, use the Penn World Table Version 10 (PWT 10.0)

Using the Solow framework, explain the economic forces behind the convergence of output per person. Then, use the Penn World Table Version 10 (PWT 10.0) to ex- amine if convergence holds in the data (see instructions below). Does convergence of output per person hold for countries in the Organisation for Economic Co-operation and Development (OECD)? What about Asian countries and African countries? What might be the reasons why a particular group of countries fails to converge in output per person? [8 marks]

data work is done below.

Using the Solow framework, explain the economic forces behind the convergence of

OECD countries - Growth Rate (1960-2019) Afrcian countries - Growth Rate (1960-2019) 4 grate grate $2000 # 4000 6000 100 00 1200 -1 -2 5000 10000 150 00 20000 25000 1960 rgdppc 1960 rgdppc 'Other' countries - Growth Rate (1960-2019) "East Asia' countries - Growth Rate (1960- 2019) 6 A OHNWAUGH grate grate 2000 4000 600 0 8000 100 0D 12000 -2 1000 2000 3000 4000 5000 6000 1960 rgdppc -6 1960 rgdppc

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!