Economic growth in the most developed countries depends on the rate of technological
progress. According to endogenous growth models, technological progress
depends on saving, particularly investment directed toward human capital.
International comparisons support conditional convergence. Adjusting for differences
in saving and population growth rates, developing countries advance toward
the income levels of the most industrialized countries.
There are extraordinarily different growth experiences in different countries. High
saving, low population growth, outward-looking orientation, and a predictable economic
environment are all important progrowth factors.
