NextBillion - A WDI Publication

By Dev Patel, Justin Sandefur, Arvind Subramanian

Bob Solow’s original 1956 formulation of the neoclassical growth model predicted that poorer countries would grow faster than rich ones. Capital flows—from rich to poor— would be the great leveler. Three decades later, the advent of the Penn World Tables gave economists access to comparable cross-country data to test that hypothesis rigorously.