Advanced Macro & Growth · intro
What moves on the Convergence Hypothesis diagram
Openness accelerates technology adoption, raising catch-up growth at every distance from the frontier: the engine of the great convergence episodes.
Poor countries can grow fast by adopting ideas that already exist.
Trade and investment barriers fall; foreign firms, machines, and know-how flood in.
Catch-up growth rises at every income level: the convergence line lifts.
This is the East Asian playbook: China's opening produced history's fastest sustained convergence.
Examiners ask this as: globalization, trade opening, fdi, technology transfer, catch up growth.
Other scenarios on Convergence Hypothesis