Assignment 1:

IDENTIFYING ECONOMIC GROWTH AND DEVELOPMENT

GAPS

Data available were GDP per capita (constant 2010 $US) and GDP per capita (current $US)
from WDI. Using these 2 data sources, GDP per capita (constant 2000 $US) was obtained.

GDP per capita (constant 2000) =

(GDP per capita of Year X (Constant 2010)/GDP per capita year 2000 (constant 2010)) * GDP per capita of Year 2000(current $US)

Calculated index of GDP per capita with base 100 in 1965

 1965Index with base 100 = (GDP per capita ( constant 2000 $US)/GDP per capita of 1965 (constant 2000 $US)) * 100

The line graph represents the GDP per capita by taking the base year as 1965. It includes

1. OECD countries (OECD) – Comprising of 36 Countries

2. Latin America and the Caribbean (LAC) - Comprising of 33 Countries
3. Sub-Saharan Africa (SSA) - Comprising of 46 Countries
4. South Asia (SA) - Comprising of 8 Countries
5. East Asia and the Pacific (EAP) - Comprising of 15 Countries
6. North Africa and the Middle East (NAM) - Comprising of 19 Countries

The most growth is seen among the East Asia and pacific countries (EAP) with an annual average
growth rate of 3.25% over a period of 52 years (1965-2017). The least growth in GDP per capita is
seen in Sub-Saharan African (SSA) countries (which comprises of 46 out of 54 of all African
countries). North Africa and the Middle East (NAM) had a surcharge of GDP growth during 1965 to
1977 but thereafter fell until 1990 but from 1991 onwards has been constantly rising since. OCED
countries (comprising of 36 countries) has been growing at a steady rate at 2.3% annually (average
annual growth rate over a period of 52 years). Latin America and Caribbean countries (LAC)
comprising of 33 countries) has seen a steady growth as well. South Asia (SA) (comprising of 8
countries) has seen a growth spurt from 1980 onwards.
Average Annual Growth Rate
Assuming that a region is converging when
its real GDP per capita growth rate is higher
than that of the OECD and that a region is
diverging if the region’s real GDP per capita
growth rate is lower than that of the OECD.

Growth rate average annual= ∑ (GR) / N

PERIOD (1965 – 1985)

Regions Converging
1. East Asia & Pacific (EAP) – 3.53%
2. Middle East & North Africa (NAM) - 3.01%

Regions Diverging
1. Latin America and the Caribbean (LAC)
2.19%
2. South Asia (SA) – 1.32%
3. Sub-Saharan Africa (SSA) – 0.28%

PERIOD (1986 – 2005)

Regions Converging
1. South Asia (SA) – 3.36%
2. East Asia & Pacific (EAP) – 2.95%

Regions Diverging
1. Middle East & North Africa (NAM) - 1.47%
2. Latin America and the Caribbean(LAC)1.02%
3. Sub-Saharan Africa (SSA) – 0.30%

The largest change of 2.04% has been

observed in south Asia (SA). During period
(1965-1985) it had an average growth rate of
1.32% and was lying in the diverging region
but in period (1986-2005) it was able to
achieve an average growth rate of 3.36% and
shift from region of diverging to converging.
3.36% is the highest average annual growth
rate among all.