Which of the following statements correctly differentiates catching-up growth from cutting-edge growth?
A) Cutting-edge growth leads to convergence while catching-up growth does not.
B) Catching-up growth comes primarily from capital accumulation while cutting-edge growth comes from technological development.
C) Poorer countries with low levels of capital stock will always display catching-up growth while rich countries will not.
D) Catching-up growth can go on indefinitely while cutting-edge growth cannot.

Question

Quizplus · Accepted Answer

Catching-up growth is achieved through investment in capital accumulation such as physical infrastructure, education, and health. In contrast, cutting-edge growth comes from technological development and innovation. Therefore, option B correctly differentiates the two concepts. Option A is incorrect because catching-up growth can lead to convergence if the country invests in technological development. Option C is also incorrect because richer countries may display catching-up growth if they invest in capital accumulation. Option D is incorrect because both catching-up growth and cutting-edge growth can continue indefinitely.

Which of the Following Statements Correctly Differentiates Catching-Up Growth from Cutting-Edge