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Unformatted text preview: Examples in the graph show that there are countries with high savings and poverty as well as low savings and wealthy countries. GDP per capita and Savings Rate4020 20 40 60 80 10000 20000 30000 40000 50000 GDP per capita Series1 3. The Solow model states that the savings rate of a country is a factor that affects the growth rate of countries implying that a higher savings rate should lead to a higher GDP growth rate. Unfortunately, this graph does not accurately depict this. The data is too dispersed to say this supports the Solow model. GDP Growth Rate and Savings Rate604020 20 40 60 80 1000.060.040.02 0.02 0.04 0.06 0.08 Growth Rate...
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 Winter '08
 CindyBenelli
 GDP Growth Rate, savings rate

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