Re: Japan 1973 Re: Concept of a "Growth Equilibrium"

[JSAlbus@xxxxxxx]

Gernot Kohler notes:
>Around 1973 Japan experienced a slowdown in long-term productivity growth
>which was much more spectacular that that of the U.S. or other OECD
>countries, namely:
>
>Japan, productivity growth rates (annual % change in real GDP per worker)
>
>1960-68  68-73  73-79  79-90
>
>8.5%     7.7%   2.9%   3.0%
>
>(Source: The Economist. _Guide to Global Economic Indicators._ New York:
>John Wiley, 1994. p. 51. Table 4.6)
>


Albus writes:
There is a strong correlation between the investment rate and the
productivity growth rate.

In the 1960 to 1973 time frame, the Japanese investment rate averaged around
34% of GDP (approximately double that of the U.S. and about 60% larger than
the European community).

It would be interesting to know what happened to the Japanese investment rate
in the post 1973 era.

Jim Albus