We have studied several economies that have highly distinct histories and have performed at very different levels over time. Some economists would argue that those countries that achieved sustainable economic growth had adopted sound economic policies (e.g., trade liberalization, flexible labor markets, and policies to encourage capital formation). Alternatively, other economists would argue that the performance of the countries depends critically upon their past history (e.g., type of government, degree of personal freedom, and natural resource endowments). Based on what we have learned, what do you think is the most important factor for GDP growth over time, economic policies or the institutional history of the country? Please explain which country’s transition has impressed you the most.
Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student’s own words – do not provide quotes!
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