Show the implications of the endogenous growth of human capital Accumulation for the convergence in incomes per Capita between rich and poor countries?
The endogenous growth of human capital accumulation refers to the idea that investments in human capital, such as education and training, lead to long-term economic growth. As individuals become more skilled and productive, they contribute more to the economy, leading to overall economic growth.
One implication of this is that countries with high levels of human capital accumulation are likely to experience faster economic growth and higher incomes per capita compared to countries with lower levels of human capital accumulation. This can lead to a divergence in incomes between rich and poor countries, as the gap in productivity and income levels widens.
However, the endogenous growth of human capital accumulation also has implications for convergence in incomes per capita between rich and poor countries. As poorer countries invest more in education and training, their human capital accumulation increases, leading to higher productivity and economic growth. This can help to narrow the income gap between rich and poor countries, as the poorer countries catch up to the wealthier ones in terms of productivity and income levels.
Overall, the endogenous growth of human capital accumulation can play a crucial role in promoting convergence in incomes per capita between rich and poor countries, as investments in education and training can lead to long-term economic growth and higher living standards for all individuals.