Which of the following statements correctly differentiates catching-up growth from cutting-edge growth?
A) Cutting-edge growth leads to convergence while catching-up growth does not.
B) Cutting-edge growth comes primarily from capital accumulation while catching-up growth comes from technological development.
C) Poorer countries with low levels of capital stock will always display catching-up growth while rich countries will not.
D) Cutting-edge growth can go on indefinitely while catching-up growth cannot.

Question

Quizplus · Accepted Answer

Cutting-edge growth refers to advancements at the forefront of technology and productivity, which theoretically can continue as long as innovation occurs. Catching-up growth, on the other hand, occurs when countries with lower levels of productivity grow faster than those at the frontier, by adopting existing technologies or practices, but this process has a natural limit once a country has caught up to the technological frontier.

Which of the Following Statements Correctly Differentiates Catching-Up Growth from Cutting-Edge