Model reveals how reallocating capital can boost growth rates between countries
The article explores how two countries can grow economically by using technology efficiently. It finds that when there are no external factors, there is only one way for the countries to reach a balance. However, when human capital is considered, there are multiple ways for countries to grow, with some paths being better for everyone involved. The model also shows that sometimes, countries may need to move resources between them to achieve the best growth rates.