Question

Per person GPD is directly tied to the productivity of the economy. Productivity is tied in many cases to the amount of land and the amount of usable natural resources available to a country, as this helps determine productivity. The greater the land and natural resources, the geeater the GDP. Yet, many countries are far richer and have a much greater GDP (and GDP person) than some smaller, poorer countries, who possess far greater land and natural resources. Why is this?

Answer 1

Answer - This fact is correct that the abundant quantity of land , labor , and resources provide the incentive for the higher economic growth and per capita growth. But some countries despite having these in abundant land and resources , are not able to progress much , than the countries where land and resources are less. This is because , the conversion of these resources , requires the skill , human capital , modern technology , capital etc. Not all countries can acheive the same level. It is not necessary that a country rich in land has higher GDP , because , it is not able to convert its resources , it does not have proper manpower , capital to do so. Hence some countries who have this potential, have higher GDP and per Capita GDP as compared to those who have greater land and resources.