Question

List some arguments for and against the likelihood

of convergence.

Short answer

There are various arguments that we discuss below against and for the likelihood of convergence.

Step-by-step solution

Step 1. Definition

Economic convergence is defined as a process where the economies of different nations become more identical or similar to each other. We can call two countries are economically convergent when they reach a similar level of wealth and development.

Step 2. Explanation

Arguments against the likelihood of convergence:

1. Customizing or adapting the technology of developed countries by low-income countries don’t promise growth of their country. This is because the growth depends more on the knowledge, education, economics, and policies of a country.

2. Low-income countries have a chance to copy and habituate new technology of developed countries but it may lack the required infrastructure what will happen?

Step 3. Arguments for the likelihood of convergence:

1. Low-income countries may use and modify the technology which has been used in past by a high-income country which helps them in a great way.

2. Low-income countries have the space for modification and they can easily make the use of low diminishing marginal returns as there are low diminishing marginal returns for the low-income countries as compared to high-income countries.