Question: Explain why the facts that (i) poor countries do not seem to have higher rates of return on capital, and (ii) the gaps between the

Explain why the facts that (i) poor countries do not seem to have higher rates of return on capital, and (ii) the gaps between the per capita income of rich and poor countries have not narrowed significantly are puzzles for the Solow growth model.

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The Solow growth model assumes that the same technology is available to both rich and poor countries ... View full answer

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