Convergence clubs, in
global economic theory, pertain to levels of international attainment. Groups of countries are classified based on educational levels,
income per capita
The median income is the income amount that divides a population into two equal groups, half having an income above that amount, and half having an income below that amount. It may differ from the mean (or average) income. Both of these are ways of ...
and other measurable factors. For example, countries considered "poor" tend to converge towards one another and create a convergence club at a low level of per-capita wealth. Rich, developed nations such as the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
and those of
Western Europe
Western Europe is the western region of Europe. The region's countries and territories vary depending on context.
The concept of "the West" appeared in Europe in juxtaposition to "the East" and originally applied to the ancient Mediterranean ...
are grouped into a higher-income per-capita convergence level. Barriers such as educational limitations, lack of resources or poor infrastructure prevent poor countries from moving to a higher convergence club. These factors make it nearly impossible for a country in one convergence club to move to another convergence club.
Convergence clubs are useful for examining economic development in a specific country, relative to other countries. These groups help to identify similarities and differences between countries, and assist researchers in making generalized hypotheses.
See also
*
International inequality
International inequality refers to inequality between countries, as compared to global inequality, which is inequality between people across countries. International inequality research has primarily been concentrated on the rise of internati ...
References
External links
Convergence Clubs and Diverging EconomiesConvergence Clubs and Endogenous Growth
Distribution of wealth
Economic inequality
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