Japan 1973 Re: Concept of a "Growth Equilibrium"

[Gernot Kohler <gernot.kohler@xxxxxxxxxxxxxxx>]

On Sun, 3 Mar 1996 JSAlbus@xxxxxxx wrote:

.....Kohler:......> >
> >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:
.......>
> 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.
>

Kohler, addition:

The same source (Economist. Guide....) has the following additional data:

                  Japan, average annual growth rates

                       1960-68 68-73 73-79 79-89
Consumer expenditure     9.0    8.4    3.9   3.1
Real fixed investment   15.2   12.5    1.5   5.3

Real GDP                10.1    8.8    3.6   4.1(=79-90)


The 1973 drop in investment growth is from 12.5 to 1.5% per annum.
Which theory explains such a drop in investment growth,
considering the fact that similar changes occurred throughout OECD?

--GK