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:

Basilar Membrane

The basilar membrane is a critical component of the inner ear, situated within the cochlea; it plays a substantial role in the mechanical analysis of sound waves for hearing.

Cochlea

A spiral-shaped cavity in the inner ear, containing the organ responsible for converting sound waves into nerve signals perceived as sound by the brain.

Color Vision Deficiency

A condition where an individual has a decreased ability to distinguish between certain colors, commonly referred to as color blindness.

Color-Blind

The inability to distinguish between certain shades of color, typically red and green.