Convergence clubs

Convergence Clubs correspond to levels of international attainment. Groups of countries are classified based on education levels, income per capita, and other measurable factors. For example, very poor countries tend to converge towards one another and, thus, create a Convergence Club at a low level of per capita wealth. Rich, developed countries like the US and Western European countries are grouped into a higher income per capita Convergence level. Barriers prevent very poor countries from jumping from one level to a higher Convergence Club. Barriers can range from educational limitations, lack of resources, or poor infrastructure, etc. All of these factors make it near impossible for one country in one Convergence Club to jump to another Convergence Club.

Convergence Clubs are helpful in examining economic development in a specific country relative to other countries. These groups help to identify similarities and/or differences between countries and assist researchers in making generalized hypotheses.

See also

• International inequality

References

http://ideas.repec.org/p/cpr/ceprdp/922.html

http://www.j-bradford-delong.net/Econ_Articles/Dowrick/conv_club.html

http://oxrep.oxfordjournals.org/cgi/reprint/8/4/57.pdf