Introduction to Modern Economic Growth NOR AUS DNK ISR SWE USA AUT JPNFIN NLD CAN BEL GBR ISL GRC FRA ZMB CHN COG Predicted log gdp per worker 1990 10 GMB MOZ RWA SLE LSO MWI KEN NPL MRT TGO SEN MLI BEN CAF BDI GMB 11 LSO ZMB SLE UGA MOZ 7 UGA PER FJI PAN PHL URY THA CHL MEX VEN TTO JAM CRI BRA IRNMYS JOR ZAF PRT ZWE PRY LKANIC DOM SYR MUS BOL COL BWA TUR TUN HND IND IDN PNG SLV EGY CMR PAK BGD GTM GUY ARG KOR BRBIRL GUY ESPITA PER VEN HKG FJIPAN JAM SGP ECU CHL THA ZWE PHL URY ZAF MUS TTO PRT COG CRI BRA MEX MYS BOL IRN MWI CHN LKA COL TUR DOM GHA NIC TUN KEN SYR PRY IND HND SLV BWA PAK PNG SEN IDN GTMJOR LSOBGD NER EGY NPL TGO CMR BEN MLICAF ZMB 10 log gdp per worker 1980 11 COG KEN TGO GHA NPL CMR MWI NOR JPNCHE NZL CAN USA SWE KOR GER AUS FIN DNK AUT ISR ISL NLD FRA BEL HUN GRC HKG GBR ESPITA PAN ARG MYS PERTHA IRL CHL ECU MEX JAM PHL JOR URY PRT BRB VEN ZAF CRI BRATTO ZWE CHN DZA TURIRN NIC LKA IDN PRY HND COL BOL MUS SYR DOM TUN IND SLV EGY GTM PAK BGD SEN BEN GMB MLI NER RWA UGA MOZ CYP 45° Predicted log gdp per worker 2000 10 NZL CHE HUN Predicted log gdp per worker 1980 10 45° NOR NZL CHE DNK GER FIN AUS JPN CANUSA SWE NLD AUT GRCISL HUN BEL ARG KORISR CYP GBRFRA BRBHKG SGP ITA IRL ESP 11 11 45° 10 log gdp per worker 1990 11 10 log gdp per worker 2000 11 12 1.5 1.5 1.5 Figure 3.3 Calibrated technology levels relative to the US technology (from the Solow growth model with human capital) versus log GDP per worker, 1980, 1990 and 2000 IRL JOR ITA ITA GTM MUS MEX ESP CHE SLE GMB RWA MOZ HKG SYR BRB VEN CRI NZL NIC IRN NOR JPN CHL DOM PAN TUR MYS ISR HND BWA CMR PNG AUS GBRSWE DNK FIN BOL FJI MUS ECU PER CYP CAF PHL KOR HUN MLI IDN PAK TGOBGD ZWE JAM LKA GUY BEN LSO THA NPL SENIND GHA KEN NER UGA AUT ISL CHE GBR HKG CAN SWE FIN AUS GER DNK MUS MEX TUN EGY JPN SLV COL BRBGRC CYP PRY ISR TUR BRA TTO NZL URY JOR NOR KOR VEN MYS CHL SYR GTM ZAF SLE GMB CAF TGO SEN NPL MRT BEN KEN LSO COG CHN ZMB MOZ UGA BDI MLI CHN COG ZMB MWI IRN BWA DOMCRI PAN PAK HND FJI IDN PNG BOL NIC BGD JAMTHA PER CMR LKA PHL IND ZWE ARG HUN log gdp per worker 1980 10 11 BEL USA PRT HKG NLD BRB ESP FRA AUT GBR ISL DNK AUS FIN GTM TUN EGY TTO SLV MEX DOM ZAF IRN URY BRA ARG MYS CHL BGD PAK TUR SYR JOR COL VEN CRI PRY DZA PAN GRC ISR CAN GER SWE CHE NZL KOR NOR JPN HUN THA IDN IND LKA BOL MOZ HND PER CMR PHL ECU UGA CHN GMB SEN NPL NIC JAM MLI BEN ZWE RWA NER GHA KEN TGO COGLSO MWI ZMB GUY MWI BEL USA FRA SGP NLD IRL Predicted relative technology URY IRLGRC ZAF PRY BRA CAN AUT EGY ISLNLD COL TUN TTO ESP PRT Predicted relative technology Predicted relative technology SGP ARG SLV ITA FRA BEL USA PRT log gdp per worker 1990 10 11 10 log gdp per worker 2000 Figure 3.4 Calibrated technology levels relative to the US technology (from the Solow growth model with human capital) versus log GDP per worker, 1980, 1990 and 2000 (1) Differences in physical and human capital still matter a lot; the predicted and actual incomes are highly correlated Thus the regression analysis 138 11 12