In the long run, expanding educational and training facilities, transportation and communication and other infrastructure in LDCs should increase ?
Correct answer: B. absorptive capacity
- A. productivity paradox
- B. absorptive capacity
- C. the residual
- D. uncertainly
Explanation
Education, training and infrastructure improve a developing economy’s ability to adopt, operate and benefit from new technology and capital. This ability to use incoming technology and investment effectively is called absorptive capacity.
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