ANT 1101 Study Guide - Physical Capital, Human Capital, Foreign Portfolio Investment
25 Mar 2014
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Document Summary
Economic growth around the world: the growth of gdp worldwide varies from country to country and from year to year, there is no guarantee that the rich will stay rich and that the poor will stay poor. Productivity and its determinants: productivity is defined as the amount of output created with each hour of a worker"s time. If a man lives alone on an island, he eats only what he catches; wears only what he makes; and lives in shelter that he builds. This means that his standard of living depends on his productivity. Higher saving rate leads to a higher level of. Income but not to higher growth in these variables. Catch up effect: the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich tend to grow more rapidly than countries that star off rich(ex:
