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A Puzzle: the Share of GDP Devoted to Investment Was

question 2

Essay

A puzzle: The share of GDP devoted to investment was similar for Canada and South Korea over the period 1960-1990. However, South Korea had a 7 percent growth rate of average annual income, while Canada had only a 2.5 percent growth rate. How can this be explained?


Definitions:

Power Imbalance

A situation where there is an unequal distribution of power among individuals or groups, often leading to unfair treatment.

Arbitration

A method of resolving disputes in which an impartial third party delivers a conclusive judgment to settle a disagreement between parties.

Third Party

An individual or entity that is not directly involved in a situation, dispute, or transaction, but may influence or facilitate outcomes.

Conflicting Parties

Individuals, groups, or entities involved in a disagreement or dispute, each with opposing viewpoints or interests.

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