Practice question · Put in order
Order this stylized development path.
- Schooling and skills catch up with the machines
- Foreign and domestic investment pours in
- Reforms secure property rights and courts
- Home-grown innovation takes over as the engine
- Factories and infrastructure multiply
Hints
- Reliable rules must exist before anyone will invest.
- The source with no diminishing returns comes last.
Show the answer
- Reforms secure property rights and courts
- Foreign and domestic investment pours in
- Factories and infrastructure multiply
- Schooling and skills catch up with the machines
- Home-grown innovation takes over as the engine
Why
The standard escape route: institutions first, capital second, skills third, and finally ideas, the only engine that never hits diminishing returns.
Practise Economic Growth
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