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Growth and income convergence (English)

The Solow model of economic growth (Solow, 1956, Swan, 1956) concludes that poorer countries will tend to grow faster than richer ones-provided that countries share the same production function, savings rate and population growth, and labor-augmenting technology grows at the same rate in all countries. The existence of income convergence has thus been usually taken to be a test of exogenous growth model versus endogenous growth models-that do not necessarily conclude on the existence of convergence in income per capita among economies. Here this note describe different concepts of convergence used in the empirical literature on economic growth and summarize the results of this literature.

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Citation

Cuaresma, Jesus Crespo;

Growth and income convergence (English). PRMED knowledge brief Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/559941468139801747/Growth-and-income-convergence