Chapter 11 develops a model that explains economic growth as a function of the accumulation of capital and improvements in technology. One prediction of this model is that poor countries will grow at a faster rate than rich countries (you might want to review section 11.4 of the textbook). Please respond to the following prompts:
- In your own words, and based on the explanation in the textbook, explain why economists expect poor countries to grow at a faster rate than rich countries.
- Try to verify this claim. Please go to the IMF website referenced in your learning portfolio assignment for chapters 8, 9 and 10 (near top of Canvas page), and compare economic growth rates for China and India to those of a few developed countries (United States, Canada, France, etc.), and comment on any differences you see. Does the real world data fit the predictions of the model?
- Compare the growth experienced by China and India to that of the poor countries in Africa, like Zimbabwe and Democratic Republic of Congo. Are the poor countries in Africa growing like China and India? Please do some internet research to try to figure out why they are similar or different. If you find that they are similar, what sorts of conditions or policies are similar in the countries that might lead to strong growth? If they are different, what conditions and policies differ that might explain why they are different? In your response, please include at least one link to an article or website that supports your claim(s) that passes the CRAAP Test (Links to an external site.). Please be sure to explain what you observe in the context of the material you learned in chapter 11.