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:

Fossil Record

The collection of preserved remains or imprints of living organisms found in sedimentary rocks, which provides historical evidence for evolution.

Evolution

The evolutionary process by which different types of life forms are speculated to have evolved and differentiated from their ancestral forms across the history of the globe.

Random Process

A procedure or phenomenon in which the outcome is unpredictable, and under identical conditions can lead to different results.

Described

Characterized or detailed in terms of appearance, function, or attributes, often used in the context of formal identification and naming in scientific classification.