It is well known that per capita consumption is maximized on the path where the economic growth rate is equal to rate of return on capital (called the “golden rule” growth path). The economic growth rate can be decomposed into labor productivity growth and the rate of increase in the labor input.
Globalisation accelerated, spurred by increasing economic freedom, lower international barriers and the revolution in information and communication technologies. Looking back, globalisation has been an enormous, though sometimes underestimated, force for improving prosperity worldwide.