TABLE 1. Relative versus Absolute Convergence in Per Capita Income: A Hypothetical Illustration
CountryYear 1Growthy1-y2Year 2Growthy2-y3Year 3
Country A$40,0001%$40,4001%$40,804
Country B$4,0001%$4,0404%$4,202
Relative gap10109.7
Absolute gap$36,000$36,360$36,602
  • Note: The relative gap is simply the ratio of Country A's per capita income to Country B's per capita income; the absolute gap is the difference between the two values. Monetary values are rounded to their nearest dollar; ratios are rounded to the first decimal.