Why is Africa so expensive?

Here is a very good Substack post by Oliver Kim, here is the key paragraph: Intuitively, poorer countries have more of their labor forces and consumption baskets tied up in non-tradable subsistence agriculture, so when agricultural productivity grows, it lowers the price level—the exact reverse of the conventional Balassa-Samuelson relationship. But at some point, enough […] The post Why is Africa so expensive? appeared first on Marginal REVOLUTION.