AI Snips
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Technology Enables But Doesn't Guarantee Catch-Up
- Technology spurs long-run per capita growth and allows followers to imitate leaders.
- Imitation helped East Asian catch-up but failed in many poorest countries.
Institutional Frictions Equalize Returns
- Measured rates of return on capital across countries are similar once institutional factors are accounted for.
- High returns in poor countries vanish after adjusting for expensive capital and weak property rights.
Open Rich-Country Agricultural Markets
- Reduce agricultural protection in rich countries to help poor exporters access markets.
- Liberalize trade on goods poor countries naturally export to boost their incomes.