ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The convergence hypothesis says that economic differences between countries, measured as real GDP per capita, tend to narrow over time. That is, the convergence hypothesis suggests that differences in living standards between countries should narrow over time.

Detailed explanation-2: -The convergence hypothesis suggests that: differences in real GDP per capita among countries tend to narrow over time because countries that begin with lower real GDP per capita tend to have higher growth rates.

Detailed explanation-3: -Convergence theory states that as nations transition from the beginning stages of industrialization to highly industrialized nations, the same societal patterns will emerge, eventually creating a global culture.

Detailed explanation-4: -GDP per capita convergence, often described as the catch-up process, refers to the process by which less advanced economies with lower-income per capita converge towards more advanced economies through higher growth rates, as they capitalise on technology transfer, inward investment, and relatively lower labour costs.