Question

What are the "advantages of backwardness" for economic growth?

Short answer

The backward countries' growth rates are higher than the developed countries.

Step-by-step solution

Definition

The countries which have low-income and do not have advanced technology to imply in the production function those countries are said to be backward or underdeveloped countries.

Explanation of advantages

The advantage of backwardness refers to those countries who do not apply new technology as that is invented rather these countries prefer working and improving the technologies that have been already used for many years. As the high-income countries always intend to upgrade their technology with a new technology that is the reason their growth rate is less than low-income countries but their GDP is always high than low-income countries. On the other hand, the low-income countries take advantage of backwardness by improving the use of the same technology that is well understood thus their growth rates are higher than the high-income countries but their GDP is less than the high-income countries. In simple words, the advantage that is taken by the low-income or backward countries is the improvement done in their existing technology which increases their growth rates.