Convergence Hypothesis of Development : A Comparative Analysis

The convergence hypothesis simply is that given sufficient time the inflation-adjusted per-capita income of all nations of the world will approach equality. This is theorized due to the observation that developing nations'' per-capita incomes increase more rapidly than developed nations as the acquisition of industrial technology by a developing nation allows it to take advantage of the imbalance in labour costs in turn increasing demand for said labour as the nation builds wealth through exports. In order to prove the fact. I have taken the year for research is 1980 to 2010 the study focuses on an estimate of an economic growth and development practice of Anglo-Saxon and selected ASEAN countries.