assignment2 points - Living standards = output per capita...

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Living standards = output per capita in general Y = F (K, N, A) Assume N is constant, so not enough improvements in K (capital) and A (technology) The first point in the background article is related to domestic K and A, and it fails because (1) K: lack of investment -> lack of savings -> lack of confidence in banks/interest rate/inflation, property rights issues Second point relates to foreign sources of K, and it fails because lack of confidence in country’s/government’s stability, market stability, exchange rate Third point relates to foreign sources of A (or not?) and it fails because they just start too poor to import technology and knowledge, or people are not educated enough to know that new and advanced technology and knowledge is essential for development Or, they are just too poor to consider any of the above issues when they face the problem of surviving today Q2 No, accumulation of capital, increases in savings ratio and arguably increasing participation rate Q3 Policies to improve items in Q2, relating to Q1 Eg. improve property rights, investing in human capital, stabilising the market.
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Hey guys, these are my thoughts on the upcoming assignment What factors might contribute to the failure of living standards in poor countries to converge on those of wealthier nations? - natural recourses. Such as, African nations don’t have many natural recourses available for trade and use. - Political issues such as war. - Lack of Education- over population could be a consequence of this. - Disease Is technological advancement/R&D the only way to achieve sustained growth and convergence? -
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assignment2 points - Living standards = output per capita...

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