By Paola Barrientos.
Neoclassical growth theory predicts convergence among countries with similar structural characteristics (i.e. preferences, technologies, and rates of population growth). In the case of Bolivia and Chile, despite of their differences, they have many common characteristics that could make us think that there should be some sort of converge: both are mining countries, have shared similar history (ex-spanish colonies and went under militar dictatorships and socialist regimes in similar periods), are catholic, speak the same language, and are located next to each other. However they do not converge (see Figure 1). Why is this? Is it a matter of time? (is it going to happen in the future?)