How does the concept of catch-up growth explain the diminishing income

How does the concept of catch-up growth explain the diminishing income gap between the developing economies and developed economies?

What will be an ideal response?

ANSWER

Catch-up growth refers to the process whereby relatively poorer nations increase their incomes by taking advantage of knowledge and technologies already invented in other, technologically more advanced countries. Developing economies undergoing catch-up growth do so mostly by benefiting from technologies that are already available with developed economies. Along with technology transfers, if these economies increase their savings rates, efficiency units of labor, and efficiency of production, it makes it possible for them to catch-up with the incomes of the developed economies. Many economies have been doing so, and overtime this has caused the income gap between the developing economies and developed economies to diminish.