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Catch-Up Effect
The theory suggesting that less developed countries can grow at a faster rate than developed countries because they can adopt existing technologies and best practices.
Diminishing Returns
A principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.
Real GDP
Gross Domestic Product adjusted for inflation, providing a more accurate representation of an economy's size and how it's performing over time.
Foreign Direct Investment
A company or individual from one country deploying capital into business ventures or assets in another country, whether by setting up operations or purchasing business properties.
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