The Solow growth model predicts that China and other developing countries will eventually surpass the leading economies of the world in terms of their level of real GDP per capita.

Question

Quizplus · Accepted Answer

The Solow growth model predicts that poorer economies will grow faster than richer ones and converge in terms of real GDP per capita, but it does not necessarily predict that they will surpass the leading economies. Convergence is conditional on similar savings rates, population growth rates, and access to technology.

The Solow Growth Model Predicts That China and Other Developing