Because of the shape of the production function, an equal increase in the labor force in a developing versus developed country would tend to yield more economic growth in the latter.

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Developing countries often have more room for rapid economic growth due to their lower starting point and the potential for catching up with technology and productivity levels, whereas developed countries may experience diminishing returns on additional labor due to already high levels of capital and technology saturation.

Because of the Shape of the Production Function, an Equal