Using the Solow framework, explain the economic forces behind the convergence of output per person. Then, use the Penn World Table Version 10 (PWT 10.0) to ex- amine if convergence holds in the data (see instructions below). Does convergence of output per person hold for countries in the Organisation for Economic Co-operation and Development (OECD)? What about Asian countries and African countries? What might be the reasons why a particular group of countries fails to converge in output per person?

Instructions:

1. Download the PWT 10.0 data from the Groningen Growth and Development
2. Centre.
3. Use your favorite data analysis software, such as Excel or Stata, to load the data
4. into memory.
5. Compute output per person for each country and each year as the ratio of GDP (rgdpo) to population (pop). Name this variable as 'rgdppc'.
6. Compute annual growth rate of output per person for each country since 1960 as 100 (rgdppc in 2019/rgdppc in 1960)1/59 1. Name this variable as 'grate'.
7. Keep the observations for which the year is 2019. Make sure you have infor- mation on a country's output per person in 1960 and the annual growth rate of output per person since 1960.
8. Create new variables to identify whether a country belongs to OECD, East Asia, Africa, or others.
9. Create scatter plots of the annual growth rate (grate) against output per person (rgdppc) in 1960 for (i) OECD, (ii) East Asia, and (iii) African countries.

( link for the Groningen Growth and Development Data: https://www.rug.nl/ggdc/productivity/pwt/?lang=en )