Suppose Chile and Côte Ivoire have the same fraction of researchers,the same knowledge efficiency parameter,but Chile's population is larger.Chile has a higher per capita output growth rate.

Question

Quizplus · Accepted Answer

Since both countries have the same fraction of researchers and knowledge efficiency parameter, the only difference is in their population size. Therefore, Chile's higher per capita output growth rate can be attributed to economies of scale and larger domestic markets for businesses, which can stimulate innovation and productivity.

Suppose Chile and Côte Ivoire Have the Same Fraction of Researchers,the