Convergence Hypothesis

The Convergence Hypothesis suggests that poorer economies tend to grow faster than richer ones over time, leading to a reduction in income disparities among countries. Essentially, less-developed nations have more room to grow, so they tend to catch up with wealthier nations eventually, assuming they undergo structural improvements and adopt effective policies. This idea implies that in the long run, economic growth patterns could lead to greater economic equality across countries, although in practice, many factors influence whether confluence actually occurs.