Final answer:
I agree that low-income countries have an advantage in achieving fast economic growth due to their potential for improvement and adoption of successful technologies and policies. Examples include China, India, South Korea, and Japan. The higher standard of living resulting from economic growth also encourages support for market-friendly institutions.
Step-by-step explanation:
Yes, I agree with the statement that it is easier for a country to grow fast if it starts out relatively poor. This is because low-income countries often have more room for improvement and can adopt technologies and policies that have already been successful in other countries.
For example, China and India both experienced rapid economic growth after introducing market-oriented reforms.
Furthermore, low-income countries may have an advantage in achieving greater worker productivity. With fewer resources and infrastructure in place, they can focus on implementing new technologies and improving efficiency.
For instance, countries like South Korea and Japan were able to catch up to high-income countries by rapidly adopting and improving upon existing technologies.
Finally, once a country starts experiencing economic growth and a higher standard of living, its people are more likely to support and invest in market-friendly institutions, which can further contribute to sustained growth.
This is evident in countries like Singapore and Taiwan, which were able to transition from low-income to high-income status by building strong institutions and promoting entrepreneurship.