Practice question · True or false
Unconditional convergence, all poor countries growing faster than rich ones regardless of institutions, is strongly supported by the data.
Hints
- The unqualified version fails against the evidence.
- Only the version restricted to similar institutions survives.
Show the answer
False
Why
Unconditional convergence fails the data test. Only conditional convergence (among similar-institution peers) holds. Without good institutions, being poor does not guarantee fast growth.
Practise Growth and Convergence
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