Growth successes and failures
Go to the Web site containing the Penn World Table and collect data on real GDP per capita (chained series) for 1970 for all available countries. Do the same for a recent year of data, say one year before the most recent year available in the Penn World Table. (If you choose the most recent year available, the Penn World Table may not have the data for some countries relevant to this question.)
a. Rank the countries according to GDP per person in 1970. List the countries with the 10 highest levels of GDP per person in 1970. Are there any surprises?
b. Carry out the analysis in part (a) for the most recent year for which you collected data. Has the composition of the 10 richest countries changed since 1970?
c. For each of the 10 countries you collected data for, divide the recent level of GDP per capita by the level in 1970. Which of these countries has had the greatest proportional increase in GDP per capita since 1970?
d. Carry out the exercise in part (c) for all the countries for which you have data. Which country has had the highest proportional increase in GDP per capita since 1970? Which country had the smallest proportional increase? What fraction of countries has had negative growth since 1970?
e. Do a brief Internet search on either the country from part (c) with the greatest increase in GDP per capita or the country from part (d) with the smallest increase. Can you ascertain any reasons for the economic success, or lack of it, for this country?