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There Is No Silver Bullet: Investment and Growth in the G7

Published online by Cambridge University Press:  26 March 2020

Chrys Dougherty  and
Dale W. Jorgenson
Chrys Dougherty
Affiliation:
University of Texas, Austin
Dale W. Jorgenson
Affiliation:
Harvard University
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Abstract

This paper considers the relative importance of investment and productivity in the growth of the G7 countries during the period 1960-89. Investment is the commitment of resources in the expectation of future returns to the investor. Productivity is identified with 'spillovers' of benefits that do not provide incentives for investment. The great preponderance of growth in the US and Canada is due to investment. Investment is more important than productivity for all of the G7 countries, except France, after 1973. Patterns of economic growth have converged for the G7 countries, but important differences remain.

Type
Articles
Information
National Institute Economic Review , Volume 162 , October 1997 , pp. 57 - 74
Copyright
Copyright © 1997 National Institute of Economic and Social Research

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Footnotes

Financial support was provided by the Program on Technology and Economic Policy of Harvard University. Responsibility for any remaining deficiencies rests solely with the authors.

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