Convergence in two sets of countries Consider three rich countries: France, Belgium, and Italy, and four poor

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Convergence in two sets of countries Consider three rich countries: France, Belgium, and Italy, and four poor countries, Ethiopia, Kenya, Nigeria, and Uganda. Define for each country the ratio of its real GDP per person to that of the United States in 1970 and in the latest year available (2014 in version 9 of the Penn World Tables) so that this ratio will be equal to 1 for the United States for all years.

a. Calculate these ratios for France, Belgium, and Italy in 1970 and 2014 (or the latest year) over the period for which you have data. Does your data support the notion of convergence among France, Belgium, and Italy with the United States?

b. Calculate these ratios for Ethiopia, Kenya, Nigeria, and Uganda in 1970 and 2014. Does this data support the notion of convergence among Ethiopia, Kenya, Nigeria, and Uganda with the United States?

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Macroeconomics

ISBN: 9780134897899

8th Edition

Authors: Olivier Jean Blanchard

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