II. Convergence Test for one US industry (to be included in your project): 1. Select an industry
2. Test whether states with low initial output (real GDP in 1997) in that sector grow tend to grow faster than states with high initial output for 1997-2017.
- Growth is measured by Compound Annual Growth Rate (CAGR).
- CAGR = (Ending value / Beginning value) ^ (1/n) – 1
- where ending value is real GDP in 2017, beginning value is real GDP in 1997, and n is 20years.