Because Romanians work longer hours and harder.
Because Romanians save a larger proportion of their earnings to invest in tools that increase their productivity.
Because the same amount invested on capital increases productivity more in Romania than in Germany.
Because Romanians have so few highways that they have to spend so little in repairing them.
Because Romanians are more innovative, so their technology improves faster.
Because a less productive generation is being replaced by a more productive one.
Total votes: 171
Learning objectives:
Understanding the meaning and measurement of economic growth, productivity and real GDP per capita.
Understanding the basics of the Harrod-Domar growth model and, in particular the role of the savings rate.
Understanding the basics of the neoclassical growth model and its differences with the Harrod-Domar model.
Understanding the role of diminishing returns to capital.
Understanding depreciation and the steady state.
Understanding the concept of conditional convergence.
Understanding dual models of economic development.
Presentation videos: