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Re: Why are some countries still so rich and others so poor
by
oannejoannes
on 02/10/2018, 19:46:46 UTC
Economic growth of less-developed economies is key to closing the gap between rich and poor countries. Dif­ferences in the economic growth rate of nations often come down to differences in inputs (factors of production) and differences in TFP—the productivity of labor and capital resources. Higher productivity promotes faster economic growth, and faster growth allows a nation to escape poverty. Factors that can increase productivity (and growth) include institutions that provide incentives for innovation and production. In some cases, government can play an important part in the development of a nation's economy. Finally, increasing access to international trade can provide markets for the goods produced by less-developed countries and also increase productivity by increasing the access to capital resources.