IC 3 Choose two countries that interests you one rich and on

IC 3. Choose two countries that interests you, one rich and one poor. What is the income per person in each country? Find some data on country characteristics that might help explain the difference in income: investment rates, population growth rates, educational attainment, and so on. Based on your findings, which of these factors is most responsible for the observed income difference between the rich and the poor country? (Hint: go to http://www.worldbank.org and near the bottom of the home page, click on browse data by country or by indicator). (10 Points)

Solution

The per capita income in US is 59,501 while as in Nigeria it is 2,176. The difference in the income of both the countries can be attributed to many factors such as population growth rate (The population growth rate in 2017 0.7 % in 2016 while as in Nigeria it was 2.6 %), investment rate (according to the latest data US investment rate is 24.45 while as for Nigeria it is 14.48), educational attainment rate (Nigeria literacy rate 59.6 % in 2015 and US literacy rate stood at the 5th position in the world) and technological development rate (as growth in technology creates income difference as well)