Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991. However, during these same years South Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?

Question

Herrera

Business

13 April, 18:03

Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991. However, during these same years South Korea had a 6 percent growth rate of average annual income per person, while the United States had only a 2 percent growth rate. If the saving rates were the same, why were the growth rates so different?

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Answers (1)

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Chain · Answer 1

Answer: Return on investment

Explanation:

The return on investment is the amount derived by investor for every amount of investment.

The return differs from company to company and country to country.

The level of investment and savings can be the same but return on investment will definitely different this is due labour skills, investment quality, remuneration policy etc.