If a poor country can "catch up" to a rich country, its productivity rises more rapidly than the productivity of the rich country.

Question

Quizplus · Accepted Answer

This is known as the catch-up effect, where initially poor countries can experience faster economic growth than already rich countries because they can adopt and implement already existing technologies and practices from the richer country. This allows them to close the productivity gap at a faster rate, leading to a more rapid increase in productivity compared to the richer country.

If a Poor Country Can "Catch Up" to a Rich