Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor county to catch up?
A) The poor country has outward-oriented trade policies.
B) The poor country allows foreign direct investment.
C) The poor country has poorly developed property rights.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Poorly developed property rights can lead to a lack of investment, corruption, and reduced incentives for entrepreneurship, making it difficult for a poor country to catch up with more developed nations. Although outward-oriented trade policies and foreign direct investment can be helpful in promoting economic growth, they may not be sufficient to overcome the barriers created by weak property rights.

Some Poor Countries Appear to Be Falling Behind Rather Than