As much as the human and physical capital in economy increases, there is a decrease in the marginal gain in economic growth that will diminish.
Explanation:
Low-income countries might have an advantage achieving greater worker productivity and economic growth in the future as their economic growth is faster than the high - income countries.
As much as the human and physical capital in economy increases, there is a decrease in the marginal gain in economic growth that will diminish. And this is called, the laws of diminishing returns.
Secondly, low - income countries find it easier in developing technologies than the high - income technologies especially countries like India and China.
High - income countries put effort in inventing new technologies, whereas low - income countries just improve and improvise their technology.