There is low level of learning-by-doing in low income countries because: There is a lack of capital inflows in these countries. Lower initial knowledge and high barriers to learn internationally. The producers in these countries are unwilling to innovate. Lack of access to international markets. Which of the following research strategies can overcome the omitted variable bias in the estimation of the impact of democracy on growth? Use a measure for market openness Use lag of GDP and country fixed effects in the set of explanatory variables. Scale the estimates in a way that neutralizes underestimation or overestimation. Use several alternative measures for categorizing democracies and non- democracies. Which of the following statements is true? Both autocratic and democratic states have a top-down institutional development. Autocratic regimes have a bottom-up institutional development while democratic regimes have a top-down institutional development. Autocratic regimes have a top-down institutional development while democratic regimes have a bottom-up institutional development. Both autocratic and democratic states have a bottom-up institutional development