Chenery and Strout identified development stages in which growth is limited by the most binding constraint. These constraints are: I. the skill limit, II. the savings gap, III. the fiscal gap, IV. the foreign exchange gap. Which are correct?
Correct answer B. I, II and IV
Explanation
In their 1966 two-gap analysis, Chenery and Strout described growth limited first by skills (absorptive capacity), then by the savings gap and finally by the foreign exchange gap.
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