Use the data from Table 6.1

 to calculate annual growth rates of GDP per capita for each country listed over the period 1950-2010. [Note: The annual growth rate \(z\) will satisfy the equation \((1+z)^{60}=\mathrm{GDP}_{2010} / \mathrm{GDP}_{1950}\). To solve this equation for \(z\) using a calculator, take logs of both sides of the equation.] You will find that Germany and Japan, two countries that suffered extensive damage in World War II, had the two highest growth rates after 1950. Give a reason, based on the analysis of the Solow model, for these countries' particularly fast growth during this period.

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TABLE 6.1 Economic Growth in Eight Major Countries, 1870-2010 Levels of real GDP per capita Annual growth Country 1870 1913 1950 2010 rate 1870-2010 Australia 3,273 5,157 7,412 25,584 1.5 Canada 1,695 4,447 7,291 24,941 1.9 France 1,876 3,485 5,186 21,477 1.8 Germany 1,839 3,648 3,881 20,661 1.7 Japan 737 1,387 1,921 21,935 2.5 Sweden 1,345 2,874 6,739 25,306 2.1 United Kingdom United States 3,190 4,921 6,939 23,777 1.4 2,445 5,301 9,561 30,491 1.8 Note: Figures are in U.S. dollars at 1990 prices, adjusted for differences in the purchasing power of the various national currencies. Source: Data from the Maddison-Project, www.ggdc.net/maddison/maddison-project/home.htm, 2013 version.