Convergence in two sets of countries
Go to the Web site containing the Penn World Table and collect data on real GDP per person (chained series) from 1951 to the most recent year available for the United States, France, Belgium, Italy, Argentina, Venezuela, Chad, and Madagascar.
a. Define for each country for each year the ratio of its real GDP to that of the United States for that year (so that this ratio will be equal to 1 for the United States for all years).
b. In one graph, plot the ratios for France, Belgium, and Italy over the period for which you have data. Does your graph support the notion of convergence among France, Bel- gium, Italy, with the US?
c. Draw a graph with the ratios for Argentina, Venezuela, Chad, and Madagascar. Does your new graph support the notion of convergence among Argentina, Venezuela, Chad, Madagascar, with the United States?