ABSTRACT

It is aimed to analyze bipolar models of economic growth that are developed to study two economies, conventionally termed a rich economy and a poor economy. It is also assumed that those economies can invest their savings internally or abroad. This chapter describes a model with exogenous investment rates. The model was developed in a study published by Filipowicz and Tokarski. It contains results of numerical simulations of values of major macroeconomic variables at calibrated parameters of the analyzed growth models. Numerical simulations of the trajectories of capital per worker and labour productivity in a bipolar economic growth model can be conducted following an approximation of system of differential equations using a system of differential equations.