Question
People who live in rural areas often have less access to capital and, as a result, their productivity is lower on average than the productivity
People who live in rural areas often have less access to capital and, as a result, their productivity is lower on average than the productivity of people who live in cities. An article in the New York Times quoted a financial analyst as arguing that "the core driver" of economic growth in China "is the simple process of urbanization."
b. If the analyst is correct the urbanization is the core driver of economic growth in China, would we expect that China will be able to continue to experience high rates of economic growth in the long run? Briefly explain.
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