Question

Relative Country Convergence

Absolute Country Convergence

Population-Weighted Relative Income Convergence

Answer 1

Relative country convergence : It is a most widely used approach. It examines whether poorer countries are growing faster than rich countries .If this is happening the relative gap in incomes would be shrining, as the income of richer countries would become a smaller multiple of income of poorer countries or as incomes of poor countries become an increasing large fractions of rich countries.

Absolute country convergence: Even when the average income of a developing country is becoming a larger fraction of developed country average incomes the difference in incomes can still continue to widen for some time before they finally begin to shrink. A process of absolute country convergence is a stronger standard standard than relative country convergence .

Population weighted relative country convergence: This approach frames the question of convergence so as to weight the importance of a country's per capita income growth rate proportionately to the size of its population.