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What are Rostowís policy implications?
• LDCs (Less Developed Countries) require aid.
The development procedure can stall at the Take Off stage for be short of savings. 15 to 20 percent of GDP needs. When savings = 5 percent then aid/loan = 10 to 15 percent plugs savings spaces. Resultant investment shifts the country to stage four as well as self-generate economic growth.
The Harrod-Domar model describes the economic mechanism by that high investment leads to elevated growth.
What are the similarities among the developing economies? Common characteristics of LDCs (Less Developed Countries) include: • Low living standards (that is low real income
Why does a production possibilities frontier with increasing opportunity costs have a bowed-out shape?
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Is low savings a problem? Countries along with low savings are caught into the vicious circle of poverty: there low savings, implies low investment low productivity therefore
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