The Catch-Up Effect Says That Countries with Low Income Can

question 61

Essay

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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Definitions:

Exploration

The act of investigating, studying, or analyzing subjects or areas in detail to discover or learn something new.

Adults

Individuals who are considered mature and are biologically, legally, or socially recognized as being fully grown and responsible for their actions.

Autonomy Stage

A phase in developmental psychology where individuals focus on establishing independence and personal control over physical and social environments.

Erikson

Erik Erikson, a developmental psychologist known for his theory on the psychological development of human beings, identifying eight stages of development.