Why Are Some Countries So Rich and Others So Poor?
December 24, 2015
The income gap between the richest and poorest countries has grown from a factor of two to a factor of 35. However, inputs—such as physical or human capital—only explain around half the difference. In this video, Vice President and Deputy Director of Research B. Ravikumar discusses this gap, the efficiency of countries in converting inputs and how it translates to gross domestic product.
Additional Resources
- Working Paper: Capital Goods Trade and Economic Development
- Timely Topics: Economic Development: Why Are Some Countries So Rich and Others So Poor?
- On the Economy: Obstacles and Potential Opportunities for Economic Growth in India
Citation
"Why Are Some Countries So Rich and Others So Poor?," St. Louis Fed On the Economy, Dec. 24, 2015.
This blog offers commentary, analysis and data from our economists and experts. Views expressed are not necessarily those of the St. Louis Fed or Federal Reserve System.
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