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What is Catch-up Effect.Define Cat-up Effect.



Catch-Up Effect =

 This Effect is very worthy Effect to know the economic situation of the country related to poor economic country and its efforts which shows how poor country attains richer economy.
However The Catch-Up Effect can be defined as

                    "it is that kind of hypothesis which explains that poor economies per capita income (i.e                         income per person of the country) will tend to grow faster rates than richer economies                         and the high level of per capita income which the poor economic country achieves.""

This effect shows the efforts of the poor countries which becomes richer by converting their poor economy into the high level economy.
You may know various countries which becomes superpower and raise their economic situation into the higher level economy by implementing various strategies and techniques.
China is one of the example who initially had poor economy per capita income then gradually it raises its economic position.

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