Is this case of diminishing return only occur with develop countries?

standards. This additional growth has an opportunity cost-society must give up current consumption in order to attain more growth. Investment in capital may be subject to diminishing returns: As the stock of capital rises. the extra output produced by an additional unit of capital declines. Thus, an additional increment of capital in a poor country increases growth more than the same increment in an already rich country. This is known as the catch-up effect because it is easier for a relatively poor