Question

Pick two characteristics of rapidly growing economies for which reverse causality could be operating. In other words, find two things that are correlated with growth, but it is possible that either those things cause growth or growth causes changes in those things. For each thing, explain a potential mechanism for which causality runs from that characteristic to growth, and a potential mechanisms for which causality runs from growth to that characteristic.

Answer 1

Growing economy are those economy which are fast developing .

* charecteristics of fast developing economy:

a. High percapita income .

b. Efficient economy activity (imports and exports )

c. Globalization , liberalization and privatization

d.High GDP

Are the above nature are found in fast developing economy however all those charecteristics are interdependent and a fast developing economy possess all these charecteristic on the other hand these charecteristic makes that economy as fast growing