Advanced Macro & Growth · advanced
What moves on the Convergence Hypothesis diagram
Faster frontier growth raises the bar convergence must clear. Unless diffusion speeds up too, the income gap closes more slowly or widens.
Convergence is a race against a moving finish line.
An AI revolution lifts growth in the countries that already lead.
The frontier line rises, and the crossing point moves: catch-up now takes longer.
If frontier innovation outruns technology diffusion, gaps WIDEN even while poor countries grow. Divergence and growth can coexist.
Examiners ask this as: ai boom, frontier innovation, rich countries speed up, technology frontier, divergence.
Other scenarios on Convergence Hypothesis