Growth Across Different Countries
Growth Across Different Countries
Economics Growth
Average world GDP was only 250 dollar per capita per year as per the estimates of DeLong during the 1800s. Even now, the GDP per capita is less than five hundred dollar per year in many developing countries of Africa. Conversely, the countries which are under OECD or the Organization for Economic Cooperation and Development, comprising of Japan, U.S., Canada and various other states of Western Europe, have more than twenty thousand dollar average GDP per capita today.
Delong's Remarks
In 1950, the gap was wider between the U.S. and other OECD countries compared to what it is today. In the year 1950, per capita GDP of Japan was twenty percent of the U.S. only, and for Britain this figure was more than fifty percent. Now, majority OECD states are more than seventy percent from the corresponding US level. Communism had a bad effect on comparative GDP. In the year 1997, GDP per capita was seven hundred dollars only in respect to North Korea while the corresponding figure in respect to South Korea was thirteen thousand and six hundred dollar.
GDP per capita for Russia was $4400 only, where as it was $20000 for Finland. For Cuba the GDP per capita was $3100, when the figure for Mexico was $8100.
Phenomena to Promote Convergence
In spite of OECD convergence, there has been a divergence of entire economic performance. Even though the attention is focused to economies of non-communist ruled states, there has been still a huge divergence in comparison to comparative levels of worker output over the previous hundred years. After 1870, the ratio of rich to poor economies has increased six times. In the year 1870, two thirds of GDP per capita levels of all countries had 60% to 160% on average. Today the figure is 35% to 280% on average. This divergence is not according to the expectation.
Labor Mobility
People who reside in countries of poor economic condition would like to move towards rich countries, to
Economics Growth
Average world GDP was only 250 dollar per capita per year as per the estimates of DeLong during the 1800s. Even now, the GDP per capita is less than five hundred dollar per year in many developing countries of Africa. Conversely, the countries which are under OECD or the Organization for Economic Cooperation and Development, comprising of Japan, U.S., Canada and various other states of Western Europe, have more than twenty thousand dollar average GDP per capita today.
Delong's Remarks
In 1950, the gap was wider between the U.S. and other OECD countries compared to what it is today. In the year 1950, per capita GDP of Japan was twenty percent of the U.S. only, and for Britain this figure was more than fifty percent. Now, majority OECD states are more than seventy percent from the corresponding US level. Communism had a bad effect on comparative GDP. In the year 1997, GDP per capita was seven hundred dollars only in respect to North Korea while the corresponding figure in respect to South Korea was thirteen thousand and six hundred dollar.
GDP per capita for Russia was $4400 only, where as it was $20000 for Finland. For Cuba the GDP per capita was $3100, when the figure for Mexico was $8100.
Phenomena to Promote Convergence
In spite of OECD convergence, there has been a divergence of entire economic performance. Even though the attention is focused to economies of non-communist ruled states, there has been still a huge divergence in comparison to comparative levels of worker output over the previous hundred years. After 1870, the ratio of rich to poor economies has increased six times. In the year 1870, two thirds of GDP per capita levels of all countries had 60% to 160% on average. Today the figure is 35% to 280% on average. This divergence is not according to the expectation.
Labor Mobility
People who reside in countries of poor economic condition would like to move towards rich countries, to