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Problem :
What is convergence?
Over time, the productivity and the GDP per capita of industrialized nations have approached one another. This shrinking disparity suggests that all industrialized nations are approaching a common level of prosperity. This phenomenon is called convergence.
Problem :
Why does convergence occur?
The most common explanation for the presence of convergence is the constantly increasing speed at which new technologies spread across international borders. This allows new technologies to be applied in all industrialized nations so that productivity is always near the cutting edge.
Problem :
Does convergence apply to all countries?
We do not see convergence in all countries. Instead, convergence only occurs among the industrialized nations.
Problem :
What are the necessary conditions for convergence to occur in a country?
In order for convergence to occur, a country must have the infrastructure, government, and education level required to support and utilize those technological advances that could increase its production capabilities.
Problem :
Can countries without the conditions necessary for convergence enjoy its benefits?
It is very unlikely that a non-industrialized country will be able to enjoy the benefits of convergence.
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