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Subject 1. Factors Favoring and Limiting Economic Growth in Developed and Developing Economies PDF Download
Growth in real GDP measures how rapidly the total economy is expanding. Per capita GDP measures the standard of living in each country.

The growth rate of real GDP and the level of per capita GDP vary widely among countries. As a result, investment opportunities differ by country.

Factors limiting growth in developing countries are:

  • Low rates of saving and investment.
  • Poorly developed financial markets.
  • Lack of clearly defined property rights and rule of law.
  • Poor public education and health services.
  • Tax and regulatory policies discouraging entrepreneurship.
  • Restrictions on international trade and flows of capital.

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