Unconditional Convergence in Economic Growth

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Match the following growth models with their main predictions or findings:

Solow Growth Model = Poor countries should grow faster than rich countries Barro (1991) = No significant evidence of convergence Lucas et al. (1988) = Impact of human capital on growth Romer (1990) = Role of technology in economic growth

Match the following authors with their contributions to the growth literature:

Pritchett (1997) = Examined economic growth discrepancies Rodrik (2014) = Discussed factors influencing growth rates Johnson and Papageorgiou (2020) = Reviewed recent growth literature Quah (1993) = Explored convergence clubs in growth

Match the following terms with their definitions:

Unconditional Convergence = Economic growth characterized by poorer countries catching up σ-convergence = Dispersion in the level of income per capita Conditional Convergence = Growth dependent on controlling for certain factors Convergence Clubs = Groups of economies that grow at similar rates

Match the following years with their significance regarding economic growth:

1990s = Turning point for unconditional convergence 1960s = Start of stellar performance in some developing countries 1988 = Lucas's influential paper on growth 1991 = Barro's study on growth and income levels Signup and view all the answers

Match the following years with their corresponding convergence ranges:

1990 = [-.0045, -.0035] 2000 = [.0015, .0025] 2010 = [.0025, .0035] 1960 = Not Applicable Signup and view all the answers

Match the following statements with their implications for growth theory:

Access to the same technology = Low-income countries should accumulate capital efficiently Null finding of convergence = Stimulated research on factors affecting growth High marginal product of capital = Expect faster growth in poorer countries Cross-country dispersion = Challenges traditional growth models Signup and view all the answers

Match the following statistical terms with their definitions:

Unconditional Convergence = The hypothesis that poorer economies will tend to grow at faster rates than richer ones. Convergence Parameter (β) = The rate at which an economy converges to a stable growth path. Standard Error = A measure of the statistical accuracy of an estimate. Population Exclusion = Exclusion of countries based on size for analysis. Signup and view all the answers

Match the following statistical ranges with their corresponding labels:

[.0015, .0025] = Low Convergence Rate [-.0005, .0005] = No Convergence [-.0025, -.0015] = Negative Convergence Rate [-.0045, -.0035] = High Negative Convergence Rate Signup and view all the answers

Match the following regions with their growth performance post-1960s:

East Asia = Significant economic growth and development Sub-Saharan Africa = Struggled with economic growth Latin America = Mixed growth results Central Asia = Observing gradual improvements Signup and view all the answers

Match the following growth-related concepts with their characteristics:

Marginal Product of Capital = Higher in low-income countries Economic Divergence = Richer countries retaining their advantage Investment in Human Capital = Key factor for economic growth Foreign Aid = Controversial in its impact on growth Signup and view all the answers

Match the following sample exclusions with their implications:

Oil Exporters = Countries reliant on oil revenue may skew growth data. Populations under 1 million = Small countries may not provide significant statistical relevance. Countries with diverse economies = Better representation of economic trends. Countries with war conflicts = Data may be unreliable due to instability. Signup and view all the answers

Match the following findings with their respective studies or theories:

Barro's null result = No convergence in growth rates Role of factors like trade = Conditional convergence Durlauf and Johnson's work = Examined non-linearities in growth Birdsall et al. (1993) = Focused on developing nations' growth patterns Signup and view all the answers

Match the following plots with their associated years:

2010 = [.0025, .0035] 2000 = [-.0015, -.0005] 1990 = [-.0045, -.0035] 1960 = No data available Signup and view all the answers

Match the following convergence concepts with their effects:

Absolute Convergence = The concept that all economies will converge to the same per capita income level. Conditional Convergence = The idea that economies will converge to their own steady states. Divergence = When economies become increasingly different over time. Regression Analysis = A statistical process for estimating relationships among variables. Signup and view all the answers

Match the following economic concepts with their real-world concerns:

Economic Growth = Improvement in the wealth of nations. Inflation = Rising prices affecting purchasing power. Unemployment = Job seekers unable to find work. GDP = Total economic output of a country. Signup and view all the answers

Match the following data points with their expected trends:

High β value = Faster convergence rate Low β value = Slower convergence rate Negative β value = Economic divergence Zero β value = No change in convergence Signup and view all the answers

Match the following datasets with their descriptions:

Penn World Tables (PWT) = Data source that calculates growth rates until 2019 World Development Indicators (WDI) = World Bank's extensive dataset for economic indicators Maddison Project = Focuses on historical GDP estimates from 2020 Barro and Sala-i-Martin (1992) = Authors of the regression estimation method used Signup and view all the answers

Match the following terms with their definitions:

Conditional convergence = Achieving convergence when controlling for specific factors Unconditional convergence = Convergence tested without controlling variable influences β parameter = Indicates the rate and significance of convergence Non-linear least squares = A statistical method used to estimate parameters robustly Signup and view all the answers

Match the following years with their significance in the study:

1960 = First year considered for the starting point of growth rates 1995 = Transition period for β parameter significances 2010 = Latest starting point used where convergence is meaningful 2018 = Fixed terminal date for Maddison growth rates Signup and view all the answers

Match the following descriptions with their corresponding observations regarding growth rates:

Negative β in early datasets = PWT and Maddison data showed negative growth rates for early starting dates Statistically insignificant β = WDI data indicated convergence that was not statistically significant Positive and significant β after 1995 = All datasets reported positive and statistically significant βs post-1995 Constant sample analysis = Appendix Figure A.1 used a fixed sample of countries since 1980 Signup and view all the answers

Match the following authors with their contributions:

Feenstra et al. (2015) = Authors behind the Penn World Tables Bolt and van Zanden (2020) = Creators of the Maddison Project World Bank, 2020 = Institution responsible for the World Development Indicators Barro and Sala-i-Martin = Introduced the β parameter in economic growth studies Signup and view all the answers

Match the terms with their implications on convergence:

Positive β = Denotes convergence between GDP levels Negative β = Indicates divergence in economic growth Statistically insignificant = Suggests no clear trend in convergence Heteroskedasticity-robust = Refers to standard errors accommodating variable variance Signup and view all the answers

Match the following results with their years in the study:

2019 = Final year for available data in this study 2010 = Earliest point shown for growth rate analysis with fixed samples 1960 = First year starting point for testing convergence 1995 = Year after which βs become significantly positive in all datasets Signup and view all the answers

Match the following types of convergence with their characteristics:

Convergence beyond short horizons = Implication for long-term economic analysis Fixed terminal date = Stabilization of end-year for comparing growth rates Cross-country data analysis = Comparison of multiple nations' economic growth Starting points variation = Systematic adjustment to analyze different economic conditions Signup and view all the answers

Match the following parameters with their respective meanings or implications:

β parameter = Speed of convergence toward steady state income τ = Half-life for closing income gap σ-convergence = Reduction of variance in per capita GDP across countries Unconditional β-convergence = Long-term convergence without specific conditions Signup and view all the answers

Match the time periods with the observed convergence trends:

1960-2000 = Mixed convergence affecting both rich and poor countries 2000-2019 = Improvement in growth for poor countries Post-1990s = Potential decline in performance of rich countries 2008 = Start of significant σ-convergence concerns Signup and view all the answers

Match the following researchers or studies with their findings:

Sala-i-Martin (1996) = Estimation of convergence coefficient De Long (2018) = Argument on OECD countries' performance Young et al. (2008) = Proof of β-convergence and σ-convergence relationship PWT sample analysis = Estimation of β during 2000-2019 Signup and view all the answers

Match the following concepts with their definitions:

Conditional convergence = Convergence based on specific parameters Mean zero shocks = Assumption for growth variability Standard error = Measure of variability in convergence estimate Overall variance = Metric indicating income distribution spread across nations Signup and view all the answers

Match the following statements with whether they reflect convergence or divergence trends:

Declining growth in rich countries = Convergence No meaningful σ-convergence found = Divergence Half-life τ estimated at 170 years = Slow convergence Poor countries accelerating growth = Convergence Signup and view all the answers

Match the terms with their correlations to convergence dynamics:

Diminishing returns to growth = Potential slowing of rich countries Economic shocks = Assumed independent across space and time Variance in income distribution = Influences σ-convergence outcome Long-term growth strategies = Improvements in poor country performance Signup and view all the answers

Match the terms to their corresponding effects on β-convergence:

Lower variance initial distribution = Can impede σ-convergence Higher β estimates = Faster income gap closure Global Financial Crisis = Shift in σ-convergence dynamics Mean zero growth shocks = Assumption for β-convergence framework Signup and view all the answers

Match the economic terms with their context in the discussion of convergence:

Poverty gap = Income levels between steady state and current Growth acceleration = Improvement in poorer economies OECD performance decline = Diminished growth among rich nations Income distribution reduction = Impact on σ-convergence post-2008 Signup and view all the answers

Match the following income categories with their respective growth outcomes in the period of convergence:

Low-income countries = Improved average performance with fewer extreme adverse outcomes Middle-income countries = Significant upward shift in growth rates High-income countries = Decline in mean growth by about half a percentage point Sub-Saharan Africa = Consistent under-performance compared to other regions Signup and view all the answers

Match the following time periods with their features regarding country growth rates:

1960-1990 = Broadly stable growth for rich countries 1980s-1990s = Era of divergence with high negative growth for low-income countries Post-2000 = Notable upward drift for poor countries Early 1990s = Stationary distribution of country growth rates Signup and view all the answers

Match the following statistical measures with the respective income categories they signify:

5th percentile (Low-income) = Moves up by close to 0.5 percentage points 95th percentile (Middle-income) = Moves up by about 2 percentage points Mean (Low-income) = Increases by a little under 1 percentage point Mean (Middle-income) = Increases by about 1.5 percentage points Signup and view all the answers

Match the following researchers with their respective contributions to the discussion of convergence:

Broadberry and Wallis = Documented positive growth rates for poor countries Pritchett = Noted the transformation from 'valleys' to 'hills' for poor countries Birdsall et al. = Explored dynamic performance of Asia Collier and Gunning = Analyzed under-performance of sub-Saharan Africa Signup and view all the answers

Match the following observations with their respective implications for growth trends:

Fewer 'valleys' in the convergence era = Suggests a significant reduction in extreme adverse outcomes for poor countries Downward drift in growth of rich countries = Contributed to the overall convergence observed Improvement in the entire distribution of poor countries = Facilitated unconditional convergence 16 percent of low-income countries experiencing negative growth in the 2010s = Reflects a marked improvement from previous decades Signup and view all the answers

Match the following statements with the correct assertions about convergence and divergence:

Unconditional convergence = Primarily driven by the performance improvement of poor countries Rich country performance decline = Not the primary cause of unconditional convergence 80s to 90s economic climate = Characterized by many low-income countries with negative growth 2010s growth distribution = Showed almost all countries clocking positive growth rates Signup and view all the answers

Match the following descriptions with the relevant economic concepts:

Dynamic performance in Asia = Highlighted as a region with notable growth improvement Under-performance of sub-Saharan Africa = Consistent finding in the literature Positive growth rates = Emerging as a trend for low-income countries in the convergence era Growth rate shifts = Notable increases in low- and middle-income countries post-1990s Signup and view all the answers

Match the following economic periods with their growth trajectories:

Post-1960s = Characterized by a stationary growth distribution 1990s = Marked by low-income countries facing severe negative growth Early 2000s = Significant upward movement in growth for poorer nations Current decade = Reflects a diminishing percentage of low-income countries with negative growth Signup and view all the answers

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