Catch-up growth is the process by which poor countries take advantage of knowledge and technologies already developed in more advanced countries.
Added by Sherri M.
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Step 1: Poor countries may initially lack the resources and infrastructure to develop their own knowledge and technologies. Show more…
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The growth models we examined this semester predict that Group of answer choices GDP per capita of poor countries will grow more rapidly than in rich countries. Governments must centrally direct the economy for growth to occur. GDP per capita of poor countries will never change. GDP per capita of rich countries will grow more rapidly than in poor countries.
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The catch-up effect says that countries with low income can grow faster than countries with higher income. However, in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity. Considering the determinants of productivity, list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones
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Use an example to explain why, after periods of rapid growth, a low-income country that has not caught up to a high-income country may feel poor.
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