20. Answer all parts (a)-(c) of this question In the last 50 years we have observed countries with a wide range of income per capita growing at very different rates. (a) [10 marks] How does the Solow growth model explain how countries that are initially poor grow faster and catch up with those that are initially richer? (b) [7 marks] What other mechanisms can be invoked to explain convergence among countries of per capita incomes. (c) [8 marks] Why do some poor countries remain poor? Is it because they tend to specialise in agriculture?
