Question

Income Convergence in the World

Optimistic Views about Income Convergence

Advantage of Backwardness

Diminishing Marginal Returns of Capital

Answer 1

Income convergence is an idea in economics where the income of poorer countries per capita will grow faster when compared to income of rich countries. It is also known as the catch up effect because the poor economy catches up with the richer one. It helps to bring income equality throughout the world , so many leaders and countries are showing support to it and adopting this hypothesis. And once adopted around the world the per capita income of developing countries have increased largely at a steady rate. World wide convergence is a method that should be adopted for better life through the world.