This is a study to explain why there is big difference between rich countries and poor ones. In this paper, author adapt new or endogenous growth models feature externalities that increase with investment or with stocks of human or tangible capital and can readily explain why countries with high per capita incomes grow as fast or faster as low-income countries.
As an explanation for the fastest-growing countries are poor countries, it says poor countries on average have opportunities to grow faster than riches, but poor economic policy or institution prevent it.
Q What is endogenous model?
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