University of Ottawa Name: __________________________ECO1102C Student Number: _________________102. (7 points) 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 take account of (or control for) other variables that affect productivity. Briefly explain how the catch-up effect works. Then, considering the determinants of productivity, list and explain four factors that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.