Global Economic Growth Patterns Revealed: Poor Countries Outpace the Rich
The article discusses how different countries grow economically at different rates and have varying levels of income and savings. The traditional model doesn't fully explain these differences, so the authors suggest a new model based on the work of Lucas and Romer. This new model shows that poorer countries can grow faster than richer ones due to changes in physical and human capital. Even if countries open up to global capital, their capital ratios may not equalize.