Question

1960 the per capita GDP of Hong Kong was substantially less than that of Argentina and Venezuela. By 2005, the per capita income of Hong Kong was more than three times the figures for Venezuela and Argentina. This dramatic change occurred because Group of answer choices

Answer 1

Hong Kong's economy was able to sustainably grow at very high rates during a long period of time. This means that Hong Kong's GDP per capita will constantly grow, so even if it started at a very low level it eventually grow to much higher levels.

Meanwhile, in Argentina and Venezuela, the economic growth rate was very small, sometimes even negative. Their GDP per capita may have been much higher than Hong Kong's 50 years ago, but since it stagnated for so long, it didn't grow that much.