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In the early phases of these countrieshistory output grew in South Africa at a rate of 4% while Zambia had the following growth rates Growth
In the early phases of these countrieshistory output grew in South Africa at a rate of 4% while Zambia had the following growth rates
Growth rate of TFP: 2%
Growth rate of Capital: 6%
Growth rate of the Labor force: 1.5%
(Assume that capital's share of income is the same across the countries), did South Africa have a higher growth rate of output than Zambia? How does your answer relate to the earlier growth trajectory of poor countries? Show your calculations to explain your view.
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