Capital’s share of total income is about 10% in
both Colombia and Costa Rica. The capital–labor
ratio is $15.25 thousand per worker in Colombia
and $23.12 thousand per worker in Costa Rica.
Real GDP per worker is $12.18 thousand in
Colombia and $13.31 thousand
in Costa Rica.
Predict what will happen to the capital
stocks in the two countries over time. How will
this change affect real GDP per worker in the two
countries?