All countries do not converge to the same level of per capita GDP as the United...

All countries do not converge to the same level of per capita GDP as the United States, Germany, and Japan. Discuss the reasons behind this.

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Expert Solution

It is true that all countries do not converge to same level of output in long run as U.S., Germany and Japan because:

Countries have different stock of natural resources and input to produce goods.
They have different capability to advancement in technology.
All countries do not spend the same amount of money on research and development.
Growth in past years of country such as literacy rate, current level of real GDP etc.

Rahul Sunny answered 1 year ago

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