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What is Low Per Capita Income Dynamics about?

Low-income countries save a small percentage of their national income between 5-10% due to having relatively low incomes per capita. This results in little savings available for investment purposes, trapping these countries in a cycle of low income, small savings, low investment, and less productivity. While inequality exists, the wealthy in these nations tend to spend on consumption rather than productive investments, further reducing savings available for capital formation needed to increase productivity

Author

Thư Nguyễn Hà Anh

Language

EN