In effect, it’s the data-driven version of my Never-Answered Question.
Yesterday, I provided another example of anti-convergence by comparing Australia, Switzerland, and the United Kingdom.
Today, let’s look at Poland and China. This tweet from Professor Noah Smith shows that Poland was richer than China 30 years ago and – contrary to convergence theory – has become even richer over time.
I closely follow international economics, but I confess that this data came as a surprise.
And why is Poland also enjoying relative success when compared with China? The answer, at least in part, is that Poland enjoys more economic freedom.
That being said, the comparison between Poland and China shows that sometimes you win a race because you are fast and sometimes you win because the other contestant is slow.
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