The new era of unconditional convergence

The central fact that has motivated the empirics of economic growth—namely unconditional divergence—is no longer true and not been so for decades. Across a range data sources, poorer countries have in catching up with richer ones, albeit slowly, since mid-1990s. This new era convergence does stem primarily from growth moderation rich world but rather accelerating developing world, which simultaneously become remarkably less volatile more persistent. Debates about “middle-income trap” also appear anachronistic: middle-income exhibited higher rates than all others mid-1980s.