Question

Consider Figure 9-11, panel (b). Based on the data there, which regions support the convergence hypothesis? Which do not? Explain.

Short answer

Based on the given data, the United States, East Asia, and Western Europe follow the convergence hypothesis, unlike Africa, West Asia, Eastern Europe, and Latin America.

Step-by-step solution

Step 1:Explanation for the regions which support the theory of convergence hypothesis

East Asia’s real GDP per capita is comparatively low, but the growth rate is the highest, and the United States has the highest real GDP per capita, but the growth rate is low.

Both of these regions support the theory of convergence hypothesis as the theory says that regions with low levels of real GDP per capita experienced high growth rates, and the regions with high levels of real GDP per capita experienced low growth rates.

Western Europe is also supporting the theory of convergence hypothesis because both the growth rate and the real GDP per capita are between East Asia and the United States.

Explanation for the regions which do not support the theory of convergence hypothesis

The real GDP per capita of Africa, Latin America, and even Eastern Europe are very low, and the growth rates are also meagre, which means they are not supporting the theory of convergence hypothesis.

West Asia also does not support the theory because its growth rate is at par with Western Europe. Still, the real GDP per capita is very low compared to Western Europe, and based on the theory, the growth rate of West Asia should have been slightly more than that of Western Europe.