Economic growth and economic development 39

.06 Introduction to Modern Economic Growth KOR HKG average growth gdp per capita 1960-2000 -.02 02 04 THA CHN IRL BRB PRT COG IDN ESP GRC PAK NPL MLI ITA DOM BRA INDSYR EGY TUR IRN ZWE MWI DZA UGAGTM GHA BGD KEN GMB CMR BEN BDI TGO RWA SEN LKA LSO COL MEX PRY ECU JOR CRI SLV HND JPN MUS MYS ZAF PER JAM ISL FRA AUT FIN ISR NOR BEL NLD CHL TTO PAN GBR CAN DNK AUS SWE USA CHE PHL URY NZL ARG BOL VEN ZMB MOZ NIC NER average schooling 1960-2000 10 Figure 1.17 least in part, by omitted factors affecting both investment and schooling on the one hand and economic growth on the other We will investigate the role of physical and human capital in economic growth further in Chapter One of the major points that will emerge from our analysis there is that focusing only on physical and human capital is not sufficient Both to understand the process of sustained economic growth and to account for large cross-country differences in income, we also need to understand why societies differ in the efficiency with which they use their physical and human capital We normally use the shorthand expression “technology” to capture factors other than physical and human capital affecting economic growth and performance (and we will so throughout the book) It is therefore important to remember that technology differences across countries include both genuine differences in the techniques and in 25