Final answer:
Economic convergence is the process where low-income countries grow at a faster rate than high-income ones, potentially leading to a smaller income disparity. Testing for convergence in OECD countries would involve analyzing GDP growth data from 2010 to 2020. Although convergence is happening, it is a slow and uneven process with differing opinions on its future persistence.
Step-by-step explanation:
Economic Convergence in OECD Countries
Economic convergence refers to the theory that societies move toward economic similarity over time as they develop. This process is marked by lower-income countries potentially growing at a faster pace than high-income countries, thus shrinking the income gap between them.
To test for economic convergence within OECD countries, one would analyze GDP growth rates using data from sources like the World Bank or OECD from 2010 to 2020. Arguments for convergence include the potential for higher growth rates in developing countries due to factors such as technology adoption and labor cost advantages.
When evaluating the possibility of convergence, it is important to consider the speed at which it might occur. High-income countries typically grow at a slower rate.
For instance, a country with a GDP per capita of $40,000 growing at an annual rate of 2% will after 30 years reach a GDP per capita of $72,450. A country with a GDP per capita of $4,000 growing at 7% annually will reach $30,450 after the same period, demonstrating that while convergence is happening, it is a slow process.
The arguments against the continuation of this pattern point to challenges such as structural bottlenecks, political instability, and other impediments that may hinder the growth of low-income countries.
Consequently, the debate on whether economic convergence will persist is ongoing among economists and researchers.
The evaluation of data from the past decade would provide insights into this trend. Yet, despite the potential for convergence, the significant income disparity implies that convergence, where it does occur, could be a prolonged process.