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Population growth is almost always higher in LDCs compared to MDCs, with MDCs experiencing an ageing population Stimuli into the economy is likely to have a greater multiplier effect due to population growth in LDCs.
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Export-led growth strategy (mainly China) means that by attracting FDI, it is able to compensate for low domestic investment in the form of capital imports, which you are referring to (Harrod Domar model)
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You're mistaken. The education systems are VERY good, notably in China. Even though they are emerging economies, they have an extremely high literacy rate due to massive government expenditure into this industry. This means that Chinese workers are productive, but more importantly still cheap. This is perfect for a perspective MNC considering investing in an LDC.
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Public healthcare may be a barrier to inequality rather than growth. Education is the key here that provides an escape from the poverty trap. It is not a private sector industry in China, given that it is a communist state (http://www.tillvaxtanalys.se/download/18.5f097bc113eacc3d6d513e/1369033621751/direct_response_2013_03.pdf)
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Population growth is almost always higher in LDCs compared to MDCs, with MDCs experiencing an ageing population Stimuli into the economy is likely to have a greater multiplier effect due to population growth in LDCs.
•
Export-led growth strategy (mainly China) means that by attracting FDI, it is able to compensate for low domestic investment in the form of capital imports, which you are referring to (Harrod Domar model)
•
You're mistaken. The education systems are VERY good, notably in China. Even though they are emerging economies, they have an extremely high literacy rate due to massive government expenditure into this industry. This means that Chinese workers are productive, but more importantly still cheap. This is perfect for a perspective MNC considering investing in an LDC.
•
Public healthcare may be a barrier to inequality rather than growth. Education is the key here that provides an escape from the poverty trap. It is not a private sector industry in China, given that it is a communist state (http://www.tillvaxtanalys.se/download/18.5f097bc113eacc3d6d513e/1369033621751/direct_response_2013_03.pdf)