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The Solow model and relative country perfomance:  Consider the real world data for South Korea and South Africa for the year 2000. Capital/Worker (K/N) and GDP/Worker (Y/N) are expressed in 2000 dollars.

 

 

Pop. Growth

Savings Rate

Capital/Worker

GDP/Worker

 

n

s

k

y

SK

.0106

.325

91495

33202

SA

.01675

.1796

22704

20315

 

describe how much of the difference is accounted for by the population growth rate and how much is due to a different saving behavior?

 

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M920845

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