Why does Romania grow faster than Germany?

Because Romanians work longer hours and harder.
1% (1 vote)
Because Romanians save a larger proportion of their earnings to invest in tools that increase their productivity.
5% (9 votes)
Because the same amount invested on capital increases productivity more in Romania than in Germany.
92% (157 votes)
Because Romanians have so few highways that they have to spend so little in repairing them.
1% (2 votes)
Because Romanians are more innovative, so their technology improves faster.
1% (2 votes)
Because a less productive generation is being replaced by a more productive one.
0% (0 votes)
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.
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