Sections
Key Terms
Key Terms
- converging economy
- the economy of a country that has demonstrated the ability to catch up to the technology leaders by investing in both physical and human capital
- East Asian Tigers
- the economies of Taiwan, Singapore, Hong Kong, and South Korea, which maintained high growth rates and rapid export-led industrialization between the early 1960s and 1990, allowing them to converge with the technological leaders in high-income countries
- growth consensus
- a series of studies that show, statistically, that 70 percent of the differences in income per person across the world is explained by differences in physical capital—savings/investment
- high-income country
- a nation with a per capita income of $12,475 or more; typically has high levels of human and physical capital
- low-income country
- a nation that has a per capita income of less than $1,025; a third of the world’s population
- middle-income country
- a nation with per capita income between $1,025 and $12, 475 that has shown some ability, even if not always sustained, to catch up to the technology leaders in high-income countries