Explaining%20Differences%20in%20Growth%20Rates

Explaining%20Differences%20in%20Growth%20Rates - 2....

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Explaining Differences in Growth Rates
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Many recent studies show that openness to trade, healthy populations, high levels of education, favorable geography, and high savings rates all contribute to rapid economic growth.
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But, how do we explain differences in growth during 1965-1990 between the following 3 groups of countries? 1. East and SE Asian countries (GDP growth averaged 4.6% annually)
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Unformatted text preview: 2. Sub-Saharan African countries (GDP growth averaged 0.6% annually) 3. Latin American countries (GDP growth averaged 0.7%) Answer: Policy variables explained much of the difference in growth rates. Initial levels of capital per worker Initial levels of health, longevity Initial levels of education or adult literacy rates....
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