4 CAUSES OF THE SLOW RATE OF ECONOMIC. ‘GROWTH IN THE UNITED KINGDOM one of the busceconome facta which hm incre fs nada conciouren iterate slow rt wrest Bin, Thule to the wor of an tal evabto the & aw emple atl o te compari ech ec fiir cout, and ich asi Sire appear amet vray ner he bom ote age Che Tine ie tke ede 3-4 t 08-4 the nea toe aur pron domes rods oat © be ag Sper conta yea an agnor por cent in France, 96 TEAS gr ein Germanys a les than 9 pe cat Jaren thw ake a moe aces pro sy the 0 er 6 Jen tcl cocoms grorh 9 Por eon 2 oe ee Srey ecb orien, estos ote her vane cent appear ven me ronomee,cace ome conti sa the United Sts, Camda Bega, whisk revs Sew at avund gah pects year have all shown mh Eolas pant nic te move ent period, Incl eee er of the “Pars Chub of advanced sous creed pa wowth ete gat st percent the at ean Japan mined iaing ih rate of goth Tickle per cons ya etna became toe generally now, the min fat colin aad men ef af andthe pbc general att ‘itn nce recep a ing te a rs ee ie plemanenon, The han been ne sewage 1 Lew he Uni of atti atta Akitas bahay Ses ove a tial cglanations. Some pat the Blame on che ineiciency of out Faines Management; some on the nature of our education gto litle emphasis to science ad technology, and too much the humanities; ome on the general soci mule which precates aggressive competivents and looks down on mere Gey taking as 4 caecr; some on evermanning and other ntive practices of trade unions; some onthe alleged national ike of hard work; some onthe insufcency of investment, or onary, or both} and no doubt one could cite may her explanations”, “iiculty about them is that with one of fvo posible ex pion, dhey are not capable af being tested, and there isn poy in which their individual vole could in any way be quant- “Another basic ciculty with explanations of this Kiud it wile they may seem plausible in relation to some counties, Took ilausble in relation to others whose relatively poet perfomance equally calls for explanation. (Thus in the Trcade 1955-65, though notin the five year 10-5, the rate of ronie growth of the United States was almost se ow as Tints, Yee no one sagged that the sume Kind of fctore— ficiency of busines management, slowness in intodcing vations, estctve labour practices, etc-—wereikly 10 have “yan the eases ofr slow rate of progress) lowever, dhe purpose of my leturetodsy ie not to aspte + te pole validity of auch explanations, nor to argue in avon ene or another, but to sugget an aternasue approach hic, |. the recorded differences ia growth rates in terns ike ane of soronie Uvelpmcnt coet Oy dent Beetia rasa tae ire ener pea | Abid) abies or incentives Put bre the contention that T [tend to examine i that fat rates of teonomie growth ate -sscated with the Gas rae of growth of she secondary” sector of he ecanomy-mainly the manufsctring sector an that this ‘a atutbate ofan intermediate stage of economic develop.to “maturity”; and thatthe trouble with the Beith eeonoany ‘eanteienas reached a high tage of maturity” ofr than othe, Jeet the rent thas it hs exbatsted the potential fr fst. eee i ai ek oc a atc Mia income per bead, The meaning of ghe tem “atu Ml, T ope, become evident in the couse of this cca a wealyinteaded so denote a state of aflis where eal ino Fr ilad hes reached broadly the sume level i the die Fectrs ofthe economy. ‘Gu this diagooss the basic rouble withthe Brith is Qua it safes from “prematare maturity". Th may vets peatnitie a contusion chan the alternative view ‘uibute our flores ta some base deterioration in the mati lure such as working #00 litle, spending too much, Tene Suiatve,wiality or incentive bur at Tent it has the wenntage that the diaguois were corec, and if came te GuNfencly accepted, steps could be taken to ameliorate the Bustin through instrument more powerful than mere exhort Tait begin by examining the empirical evidence in fou ‘ot my contention; 1 then discus the eeoreical reson te Sos yan ally is implicason in ems of potential grow ‘Ret of Britain and other advanced counties. “Let ws then begin with the evidence. we tke the wale Jndutay advanced counties for which figures are aval sarin ye Table there are = fe" counties, sich as Swede Starland, which hd go be emitted fr lack of comparable arene Bod that there is «very high coreaton between St ie ros amie pediet and the at tl acing set yi reo Fee erat crea ne of goth, he west se ea gos of aacring pool oT ee gown oft ccomany a whole ‘rine is adieated by the tegresion equation chown at ‘batean ofthe able which in terms ofall the ural tts, shows aust OF THE SLOW RAE OF ReoNOME OROWTH 105 LS obs ee ae TS "aveanon 196-4)" sancnaoa cp kaa wEBR ee Nn Aan Data of GDP, piss cnr ot Pen om ea Gene renee Somber ae pp ae eo T= wg GDL. sud the rate of growth of manactring prodaction. fm te bas this one can red Bly acura the rate of Gpowth of an cconomy—at least over a run of yeare—it one Sows the rate of growth of is manufcraring redo. OF coun the mete fact thatthe growth of manufacturing wi he rv GD. foi the mansfscurng ctor ia fh age-cmle al th nter—somewhere beeen 95-40 pe cnt forthe J truives considered. But the represion equation asserts more | thn th. The meaning ofthe pte contant i he equation (sed ofthe regresion coficient which i sgnfeanly less chan hy i that rates of growth above ger eet a year are found only in cae where the sate of growth in manufacturing output [in exes of he overall ate of growth ofthe economy. Ta oer104 ond, hr i. pastve colton tetween he ovr ‘Beigua shersatget ISS, SS ike not inverted bow far hs Bas Been te SNe Metra ped, but i= oy om tore eerie thence cetnsy publ ore Yur TRE Bataan Page urd he we Kind ofvelatiomtip? Cuming the moment, cht hk reltonip i aucune hypoiecswhih capabe of xpling ‘Wee beware of ating swat snes to ‘Snip mls ean be sown t Be conten ith caesar potas whch can be oppred by ake Si ae terete mgr oer oe larly accom ty irence in he ia Len Oe tig popetn) ke pany Spinal ere ye Teanga Aldi mot be tested 1 dra posuctne poet Thre ore ger! rea ic maka he rate of inrene of onpogerman, fr Oe tat aa whl epenent on She rat of growth mae ena adorn? has toen sugested ose bese et diay mantacurng seis ihe ha Se SEPSP the ceaomys nner xgaon of he Mg rede Bio hsnancorng ers pulls op the sveregey and ao dik Seen nia pega mesure bythe neh seer modu is higher in musing sc Sth She yo tata greater concen cma fetusg crn the oval ef sane. Thoweir nether of ince sopposicons ems capable of ze pgm ete Te ncn te lee of oop pet hed Bese trent sector Beckerman hat ree seers imap oemplsing more tan mal pet of SERGE dittence io podctraty owh rae, tees {mercer sft The ond papaian, i were tly ore won it hs teams rth he of ‘sector (in relation to the whole economy) gic roth The a ed Yew, na ai Fn es J RRR PG yin (Cae Vey Pro, 1 loins OF THE SLOW RATE OP EeONOMIC GROWTH 105, fiber than to its rate of expansion: ie would make the rate of Tetnomic growth the highest in those countries whese indastal Aitor, 2+ mesmed by the propation of total manpower en- “init the largest. On this tx, therfore, Britain ought co fut near the tp, not at the Boom af the Teaguecable F aute apart ow this, the proposition ie factually incorrect nological progress and productivity growth is by no means ed to manufactrings in many of the counties examined, rivity growin agriculture and mining has been higher sat "There however, third pouble explanaion—he existence oF Gas resume, which causes pro- to, br ata byproduct of the ins ir That mavsactring.sctiiGee abject the “law of increasing rears” was f course a well pow contention of the clasical economist. One finds the tein ofthis dotrne ia the fst three chapter of the Walt of Sato, Here Adam Smith argued that the wan per unit of HHhour what we now eall prodsetivity—depends on the dvison ff about: on the extent of specialisation and the division of Godwin into many ileentproceey, ax exemplied by his |) rons example of pinmaking, Aa Smith explained, che divion {labour depends on the extent ofthe market: the greater the rake, the gueater the extent to which diferentiation and pecalation is arid, the higher the productivity. Neo-lsial rier, with one oF two funous exception, ke Manhall and (Allyn Young, tended eo ignore, orto underpla, this phenomenon, As lan and Matthews remarked in a recent aril “the reuon Foe ohe neglect ie no doobt the difiuly of fiting increasing fetwns ino the prevalling framework of perfect competion td marginal productivity fctr pricing” © “However, Adam Smith, like both Maetall and Allyn Young “ier him, ennphasisd the interplay of static and dy a "wih air nerase ie the scale of ‘adustial activites, A grenter divin of labour is more pro- Se sete Thmy of Emon Ges A Sure Heint Jarl Deeb, Somer a1e6— puRTHER nitavs ow RooMoMIE THEORY Ljcis oF THE stow BATH OF HeoxOMIC OROWTHE 07 detives partly because 1 generates more all and : cere arity in urn ics more innovations and designing frowements We cannot late the influence ofthe economies ap Ltngeseale production due to indivsbilies of varios fd which ave in principle reversible, fom such changes in logy awoclted. with a proces of expansion which axe Tevenibe, Learning isthe product ef experience—which Sr Arrow bas shown, that prodsetty tends grow the the fst ontpat expands it lo means that the le! of tivity isa anetion of cumulative output (Bom the beg ao sar oe ramen ome 0 ace rather than of the rate of production per anit of time. ‘in addition, as Allyn Young empbasied, increasing el fn a “imaco-phenomenon’—jst because s0 much ofthe tries of acle emerge ata ret of increased diferent emergence of new procenes and new saidary industries Cannot be “lscerned adequately by observing the llc ‘arisions inthe see ofan individual firm or of a pac Jadstry", At aay one time, there are industries in which eg Ines of sale my have craved to be important. They may neve Teles beneit fom 8 general industelal expansion which a Young sid should he “seen ara interrelated whole”. With te Extension ofthe division of labour “the representative Sm ie the industry of which t= pat losses ideniy” * : Keon. Since Verdoora's work it has ben inventigated by many among them Saltz, and more recendy by Beckerman,* Fa none of these authors (lo my knowledge) has given Fasten cps to the fact that item phenomenon pecuin}y Desited with the sovalled “secondary” acuviies with faa seduction, ineading public utiles, comsruction, as well Sqanufietsring rather than with the primary or terry ofthe economy. Satan Sa Sr “This ia my views is the base reaon fo the empire ship beeen the grawth of producti and che growth of ‘lees which has secenly come to be known a8 the [Gas in recognition of P- J. Verdoor’s early investiga published in 1997 Jee 8 namie rather han a staie gat eof ep) nov mt em ot Sipute primarily Decnue tedhnlogis progress enters nt Tad rp just. a reflection of the economies of large-scale ro | a ence nmnapty Done" es J Emm Snes pase countries in the period 1959-4 t0 1985-4 i given in seepage ble 2 which shows foreach county the growth rates of pro= nw a nai Prope, amie Jory Deals ee afin eal Oy Cie vey)PESSSSASSSSSSSESSHSSSSSOSSCSSCSCSOP SSE ST EVE tof FURTHER s8HA¥s OW ECONOMIC THEORY Gjosss OF THE LOW RATE OF RCOKOMIC OROWTHE 109) ction, productivity and employment. The rents ate sg chatted iow regrecon uations, productivity on oop “Tanloyment on oxtpet which sre wo dierent ws ol Stine same rluship™-and which mgge thatthe SAIC Site have phyla mojor role isthe determina retveity grow rts. Agen, te eladoncips by the Eta shown to Le highly sieane and hey ogy hurt Bom an Sautonomou? fut of producti) ‘Round per cena year, the Inert 2 Eaton of the fn wal epat: cach pexentage adn © the vue requice tg pet cnt ines in he grow Oem spent ia tomy of tnhour, sad isc with © 09 Ton inceue in de grown of productivity. These coef Sit sey doe to tote found by Verdoan and ther pee are some economits whe whit nding the reitonshp beeen produto roth sod rodcin aretha se nothing about coor and fie: the Ver Ta Weietog to this view, my sinply eect the fc fir growth rte in prods inde, via te fle ‘Sv con und pricey fer rate of growth of demand, tote oter way Tod : “rs aleznie hypothe imo owes, ily speed iritvsem i loge hortcomings would at ance be ap ibe rate of growth of profit in each Sadusry and ‘ch couny fa fully autonomour fete, we neo ‘pte to explain The ua hype dat the geo erro mally 19 be explained by the re etedge a cence and technology, But in that ese bow’ fo expats the lege ferences he sme Sedsty ove ne erod inifzen counties? How an the pow ‘Sides account for te fact, fr example, tat i the ped 7BS1-60prodetity in the German motorcar istry it ee cy pr cnt year and in Britain oly 27 per ees Seon? Sine ange ements ofthe car indy in bot coun ‘controlled by the same American Sem, dhey must have he same acces the improvements i Knowledge and hows Tht alternative hypothe tantamount toa denial Feihc existence of increasing returns which are known to be an can feature of manulseturing indutry, quite jndependenty re Verdoor Law and one which i Bequenty emphasised in contextsasfor exaunple in analysing theefesof economic reo oxblih tis arate bypotey,H nt eae Oat produc grow ae ae 9: pet Et onary osmume (ot dienes ix ped si ei rt Leech re dare seco 22 Sie the moves of le rcs Cd 5 a oven of ge ad oes, cia ican frie pc fa ene Se ee a ree of manaicrbe inluie 8 eb ahaye pci ani! ooce of ia rT Fe ras bit to eoorco wenfoan ‘ice te riship beeen pricy grmth and > Oe: pow scented ie lng icici ere ey gril ras do ot npn ear aod we ge aint vino he “ticenopraning” of ae sion We cn award mrs teh coy 26 tad eagle posucty grow, baton 8 nore stared bh dines duty grows fom ee orn erento ies cer wey by angi acti Snr to wat col be expe eon tbe a of ere ste fl manu proven On i Sy fad tht tice wat one BAGBIngty good perme — JP Sieayvhwe scored proiciy owt Way gird higher than could be expected; and there was one dulstandingly el pret —Conaie aoa of oducty growth i es oly cna high athe compu ge: Thse es to mec, por petomer-iay ard Desa Tila Weency of uund tp se ad ee moderately fet primes Nethesands ig ad she Used Stato ne recy ered ast percent abe the average ORS hero bur ot hem were sly avenged th olan anne tran edvoup_ comprises Japan, Germany, France and Austta—with Geviatins of lea than 2 percent for the rereson linen finally there was one motginly good performer, with a recon tac was 7 pr cent beste haa the computed Sgure—the Unit Kingdom, If we award, ar we must on tis text, tothe sey average performer and 2+ to the moderately good perform, Brit, I eink, must be rated 8? +. . "All thei subject of course to the stainieal uncertain i herent in all international comparisons, and many of a deviations are too small t be f much signifeance in judging ‘counry’s performance, But the inteenting point abost thems that with ne notable excepion-sgain Camada—dhey appt to be clossly related to investment behaviour. The counts, Which inves a grat deal in relation to dei growth rate wag {he good performers, whit the countries whove invermen wa small im elation 10 ther growth rate were poor performers. IP tve measure investment behaviour hy the ieremental capt ‘ouput rato (ICOR for shor) ste Sad that Norway, the Dt peslormer on the Verdoora txt, had the highest COR (overs) 1H che good performers had overaverage TGORs (over 3) all the average peformers had average ICOR® (around 34), nd the oot performers had low ICORS (below 2)! (Canada was the fone exception to thi rule—a poor peefarmer witha very high TGOR—but Iam glad ta be abe to report that since the dat ‘consdetably) In other words itwe lok forthe elects of ioe tent behaviour on growth, notin terms of he grow rate ie but in tems of a couney’s performance according to the Ves orn tee, the Figures make much more sense, But they alin Sndiate that Jncteasing-rerurs is by fr dhe more importa cause of diftence in productivity growth rate; dfeences ia fences achicha invesment_behay nly to anofectring seve or that apple o every mane Tetuting indurey considered separately. Bue its applcason "108 in ee een re et oc StSaa a ey REewt ted ce of th examination Canada has improved her showing que E Snithian principle of the advantage of speciation outside the indus] Geld is clearly fr more limited. Ie certainly les noe SPA, Sn he evidence ofthe states, to agriculture hd mining, where the grow of producivigy ha been tach {ester than the growth in prodection and whee, ofr as any Genie relation is chown, productivity growth snd employment foirh tend to be negatively related, not positively. This for the clasical contention that these te "Wining retur™ Jpdatses the fact thae thi is overaié by tchnolagical progress forthe adoption of move capitalintensive methods may sates ally conceal this, but toes not eliminate sgificane, In omne ofthe countries the ela ‘ot gr fnaprclture ismevey the pasive consequence of the absorption _ ular arm secoiany and era fess fei ae isa po re Tana he tay evr, comping sch siyepent tema pon, tsipton, bag senna, caring and heey Ins and barren td pal Sevssofth mat aed in ui ad prt orded rs ngerscruntfrg-go pe ator more Ste teal ps al epoymast of fe ndvnced eam Que mach ti is ee learning by expec omne deat te ferent ofcle are ot ary so prominent shear enka Sar quly Inte cr of reste roach or cuca and ofthe division of abour must operat in these tort of way fin industrial activities. Bue precisely in there fit eannot be dreay reflected i the estimates of productivity, put" cannot be measured independently of “input Tn wome Tis in which output can be meanited independenty—ay, for ‘example, in transpert and communication, statistical evidence hos no coreltion between productivity growth and production _ Howth In yet other uch as ditribtion,preduetvtymeaning Sergi surmet bt hc mera ecto of changing incidence of excess capacity generated. by ime ict competion, and not of tru economies of scale. In other _ word, productivity may ie fn automatic response to the rein esl OAR Venton rltocip ar FE tmployec—tends to grow the fase the fuer thereinonmmption cased by te growth af produton i the pany seer sere jas the protctivity ofthe milan Goskie witiou ay tela change, when Be eves fetes mk outs ach dour intend of one bo i eva of growth of manning production (omer wih clay ae few wong which is likely to chert a dominating influence on the weNSceconon gow arly on account fs een on TE Stow of product in the industrial sector ie rag Eotecaue wl te, aden to rae the rte rac Suit growth i ter sect. Thi wl Dapper mh ee agrcuture ad nthe dvbwive onde are peau induces» fer rate of abortion of opi wry bend en sr 9 tne eeu tut goods into consimmpon. And of coune Be hose pe that duration acs the Tate of ‘acd change thghout te econo) 1 remains to deal with the question of why itt that some counties manage to incresie Ce vate of masacring poe Ton mec faster than ofher ‘The explanation, mp ‘Sere partly in demand factors and pry in ule fi TUG yk ef those combine make strates of grow te « SRREIGie of ia imermodiate sage in sconnmic eve einonic growth i the seat of a compen process ints (fon between increase of desand induce by- incest ty nao ocreses in sop generate in sponse 12h SEB amd nce the math sta hole coment SG ateed again codes, de increwe in_damast (Sofie ay commody, or goxp of conmodiin, refs Ge ie apy of lier commode snd vie vrs. The aaet SP ihe cheerencto wil be conned by oth ET Stash and supply conta By vail prerents seer and by ecbnologial fon: The caiviencion sre tapid the move the deand increases foied on commoties which have a law spy reponse, ie ger ar dead soe ceed harem Benton ais at jor mine of Re mage ee An couuncn bt sso ndical macaw Viewing AP pct tom pater sage what comme "etme aT matiaciring.outpet—iWwill be conveneat to “ansider the problem in two stages: first, from the point of view ‘the sources of demand, and secondly from the point of view tae icton which goer potential py. tbe mac tm the pl few of demand is [ATRL tom tree worce tom comnmpton, mesic B sest cad Gom-ne eyo whch T mea thee Err cferpeoorer apo [The hm of come demande she hanging fcss of tps sarc alot Priet eiewel town tae site acy fr mane Fire) gotenas retool ina poway poprion fo er expe peat on manhenred wrod “a dnc fobs oan intra oon inthe le of eal acme pt Te sci lew alco high proparin fot meee oa sri eens pt try gh or Biogen i ay fed rm RUE i sels and ren to tat of ow: but Br tn onimed nppeone of meen awh uchneso leven en i wold Ef Pere rail. tthe te son n whch propern is oh ge ad rowing Shr ss double ineacon malig fer exo ow Sein enna toe eo = ie “real incomes; the risen real incomes fate growth ‘of demand for idusrial products ee "The, however, is only pare of the explanation, Amore in pecan source of grow in demand originates in capital ines Fin. Ii the peciliarey of highly developed indunril sector tis it largely provides the gooss om which capital expenditure is pet, and hereby generates a demand for Is own predacts bythe very proces of supplying them, Once a country attains [he stage of itdustrialisation at which i largely provide fori [ova needs in plant and machinery and not just im consumer :SPIDIDIMHSSHDIIISS SDH DED HESS KHdD HDDS 114 YORTHER uA8A¥5 ON noONOMIC THEORY rete ero of enn ra pac ln xe Hepped! Up very considerably, since the expansion of caz ft a perereg peepee tear | ee i en noes eal ett od Sn ee es hoperenmicn bog is not hampered by labour shortages, ot shortages of basic maters Ee ee er alee a an en chal aoor h ‘toca ee eter eas The third source of the rate of growth of demand arises fom oan ea nace eS eae ren ee ean oan ae cee eee ane nora Sn et ge ciate 2 ai ty ee tones oa a eas of aed Seana att UPAR oe poco pore same ane cial seen rragrcadiereoe el ee eae Tist Ell a erected by cope Bee a ances ike gor of oh ey a ses ee a cand bee mead ee ceed i be send ay ed ee tareala bon Pg hots ge which 1 ik miy eat Bevan vi ur of fone Joan a tong at frowh of consumption hasbeen, her growth doc tothe ety NY trp fre ghd hone ua ete say gn at eae atid ‘er onc tees ct ly scope sal omy ha agued seemnily lrg re eon eae Sky ite ore en wad oo a, Sinead nel prs fh eo ewe " a oot A sain te mate fe emda ales he acta eune Sf declpment aya ny sage Sse Sm nerdy ap cones a ae PN prompt aso ar ae cele shold be dived ow once che ne Py Telcom as cae ee ‘modities or labour. As the industrial sector expands, it absachs us ar a ee eS caspase poled eat sed ads a [etre goods wich i does no provide use or ot saint & {quantides and on which it is-dependent-on is ‘probably relatively more important in the earlier stages of ine loin, bt a postwar epics has owes te ter eg cp, tenon the al gly deco tcc Grea in antecedents rina ak fed guts nd component Fay, nda grt foe trates demand fr sever f muro, kn bang irance, lye accwntnt Sls ond ss ea Sb in pat yatta ft ep to (A, he wif dre coma god et op 4 qovng dna fr spd nase so) or an nda county eugh not fri poy of fe dase rue peer fonda see ally takes the form of a balance of payments const aeh ila ite of growth generates rate of of growth generates arate of growth of iors which exces the ate of growh atexpac THC tainly crue of counties in the early sages of instalation16" vuRFHHR REFAYE ON ECONOMIC THEORY : Total import requirements at a stage when the ee aan sone tring the lant wenty yeas were invariably attended by rapid Seances of ee det, much ae bt err Stee : She be how ste of growth of exports, we aoe ee a rate of grow of icon of spent RS RE GAUSES OF THK SLOW RATE OF ECONOMIC cROWTH 117 “The important question i whether, gtr from balance of paye ments constraint, it would have been posable c increase ot ‘manuficturng outpst at a Gtr rate, Was the growth in prot ‘detion mainly governed by she groweh in demand for mami- fhetred products, or was it governed by aupply-constrant which would have frustrated a higher rate of growth of up, snespective ofthe growth in demand? consi venngies Finis An here we come back tothe labour tation and to Verdoor's Law. This we ave serm, ages hat «higher ate goth ef manuf wt Dat ot enough 10 WE the not fora ar fae (poh of cl a psa Diss pero fer Frown manulactrng indy ivaiably ed o severe aor Sfonages wich slowed down the powth eno snd hich Connd for some ne afer production reached cyl fakin atom shat ery ecco, employment continued te afer ep had og to fal Al gps th a her sate of growth could not hive been maintnnd ules tore manpower had ben made availble te manufctrng Per Toderd all hier evidence sages that fst rate of snd growth hs ivrisly ben aie with at ate ei growth ef employment in both the scedary and oe terry tector of the economy. The msn source of tit labour has not een the growth ofthe working population, wor cre tami tom, br the roe sro atu, “igi unemplo- Jeet" on the land. Ta the cone of lnduation tee has Yeon a contnuou rar of labour Bote eotysde othe stan ares in the coe of which the parentage ef the abe fee in geile nines in n aemate fon, Bat he tr ia poce proce hentrtelabou oe ena, tars terms manpove!uliis inthe ryan vera soe, gure, the roc of tant bord ce IEP oy exten alr nd Sonia produtvigy is einated, and this becomes fly118 FURTHER astAYS O ECONOMIC THEORY ‘ee ane oh Sony teh de et et eeu aro nts Ee te toa labour force andthe rate of change in explo In agate and mining indy and the services Te thous the percentage commpedton in total employment the dee sectors in 192~. “One of the rersarhable fesvre of Table ithe uni in employment ia agecutore and mining in all eounsi qnUNES OF THE SLOW RATE OF EeONOMIO GxOWTHE 119 sovied between 2 percent and 4} per cent a yea. Ia counties fp wich the ageealural Iabour Farce was still Iatge, aa per, eof total his meant substantial anmval adiion tothe tou force in indatry and services substantial both abot fl in reation to the growth of the working Population, whic ns elatively modes, in most countriee while in the counties ere the ace of the Inbour farce in primary occupations war arin the United Kingdom snd the United Staterthe ie of ncrease in employment in secondaty and tertiary cece. was much smaller. Asi sown in Table 5, the United sdom ha the smallest rate of increase in employment in jsuy and services taken together, despite the fact thatthe ie of growth of her total labour farce over this period Was ger shan that of ve of the other eleven counts The ex- nan is found in Table 4, which shows chat Britain had the 1 proportion ofthe abou force agriuleue and tining Table 9 alo shows that whilst dhe absorption of labour in the dary stcor war subwantial in all countries at least of the ‘Sotte te rmmany ocasnom [owns cay i