The Solow model of growth says that poorer economies should over time converge towards richer ones in terms of real output put worker.

Question

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The Solow model predicts that poorer economies should catch up to richer ones over time as they benefit from the accumulation of capital and technological progress. This convergence occurs through the diminishing returns to capital, which means that as a country invests in more capital, the incremental gains to output will eventually decrease. In the long run, differences in capital stocks will converge and economies will grow at the same rate, leading to convergence in real output per worker.

The Solow Model of Growth Says That Poorer Economies Should