Why Are African Countries Poor
In addition to this, one of the most important factors has been disputed, which is ‘institution’. Namely, how could the countries mechanism and regulation can create job and enhance productivity and eventually promote the wealth accumulation. However, because of the special colonization history, the institutions of African countries are disordered and fragile.
African slaves had been transported across the Atlantic Ocean from the 16th through to …show more content…
Based on the Solow Model, in the short run, economic growth is determined by the change in the capital investment, labor force growth and depreciation rate. However, lacking of elite and investment increased the burden for African countries to promote output. On the other hand, relatively low technology in African countries restricted the growth. The long time colonisation compelled African countries away from the opportunities of technology progress and trading, so that missed to follow the trend of global economic