Practice question · Put in order
Order the historical arc of global income divergence and convergence.
- Postwar: Japan and Europe converge toward the US
- Industrial Revolution: Europe and US pull ahead
- Pre-industrial world: income roughly similar everywhere (~3:1)
- Post-1990: China and India begin rapid catch-up
- Colonial era: extractive institutions cement divergence
Hints
- Incomes were broadly similar before the divergence began.
- The most recent phase is dominated by one region's surge.
Show the answer
- Pre-industrial world: income roughly similar everywhere (~3:1)
- Industrial Revolution: Europe and US pull ahead
- Colonial era: extractive institutions cement divergence
- Postwar: Japan and Europe converge toward the US
- Post-1990: China and India begin rapid catch-up
Why
Similarity, divergence, institutional lock-in, selective convergence, and the Asian surge, the global income story in five acts.
Practise Growth and Convergence
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