The truth about convergence of living standards across the world Essay

The lawfulness about convergence of living standards across the world - Essay ExampleConcerning this, reviewing the academic literature in this issue would make sense. A certain study was able to probe and contribute to the upward gyre number of economic growth literatures by employing other affable indicators alternative to per capita income (Hobijn and Franses, 2001 Ciscar and Soria, 2000 Fung, 2009 Welsch and Bonn, 2008). Some of these papers found that the convergence in gross domestic product per capita does not necessarily mean convergence in other social indicators. However, as observed the gap amongst rich and poor can be examined in historical gross domestic product per capita and in living standards. Another study stood in stark contrast with the findings generated by Hobijn and Franses (Neumayer, 2003). In this research, various tests of convergence were employed including regression analysis, the coefficient of variation, kernel density estimates and transition prob ability matrices. This study contains an lineage that convergence should be measured based on the living standards and not in achievement index. Concerning this, the counsel of the study chose to include life expectancy, infant survival, educational enrolment, literacy and telephone and television availability as all cardinal(p) aspects of living standards. Neumayer found that there was a strong evidence to support the convergence of the mentioned aspects of living standards. ... establish on the above findings, it is imperative to consider that economic convergence remains a very important economic issue for more relevant academic explorations. Regarding this, the proponent of this paper tries to understand up to what cessation is the hypothesis that there will eventually be convergence of living standards across the world back up by theoretical and empirical research. Per capita GDP (Gross national Product) In many convergence studies, per capita GDP (Gross Domestic Product ) is the common measure of the bucolics economic growth. After all, it measures the total output of a country by dividing the GDP with the number of people in it (Todaro and Smith, 2011 Angeles, 2008 Egger et al., 2004 ). Based on this logical shape up behind the meaning of per capita GDP, many economists find it useful to use it for comparing relative performance between countries. When one wants to know the level of productivity of a certain country, a rise in per capita GDP could potentially signal economic growth. Therefore, per capita income of poor countries should relatively higher than developed countries in order to wee-wee convergence of living standards. However, this argument is widely debatable because there are also many studies assay to point out that there is continuing divergence of living standards all over the world (Cole and Neumayer, 2003 Portnov and Erell, 2004 Allen, 2012 Ravallion and Jalan, 1996 Morgan, 2009 Rakowski, 1994 Decancq et al., 2009). In the f irst place, there are also many empirical measures associated with finding the living standards. It turns out that per capita GDP is just one of them. Convergence