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Models of Capitalism: Growth and Stagnation in the Modern by David Coates

By David Coates

Publish 12 months note: First released in 2000
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The modern debate on fiscal coverage is ruled by means of the difficulty of ′which version of capitalism works best′.

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Example text

This can only be understood fully at the level of particular industries. (Porter. 1990: 8) Porter and others are quite right to point to the different roles played by particular industries in different economies, and hence to the importance of explaining why particular sectors are more successful than others within one national economy. There certainly can be no disagreement with the argument that, to be fully understood, economies need to be disaggregated; and indeed such disaggregation will occur in many of the chapters that follow.

Were] low outlays for research and development, the rise in the direct and indirect costs of regulation, and the increase in energy prices' (Baumol and McLennan, 1985: 9). They conceded some ground to the qualitative dimensions of factor-use to which Denison alluded: not simply management quality but, in relation to Japan in particular, cultural differences and differences in worker- management institutions. : 52); and they were in any case, at best, marginal to the story. According to Baumol and McLennan's reading of the bulk of the growth-accounting literature comparing Japan with the US after 1973, 'a primary source of the disparity [lay] in the inferior US performance in terms of saving and investment', such that 'most of the differences in manufacturing productivity [were] explainable by the fact that Japanese workers use[d] more plant and equipment than their American counterparts' (ibid.

To find answers, we must focus not on the economy as a whole, but on specific industries and industry segments. While efforts to explain aggregate productivity growth in entire economies have illuminated the importance of the quality of a nation's human resources and the need for improving technology, an examination at this level must by necessity focus on very broad and general determinants that are not sufficiently complete and operational to guide company strategy or public policy. It cannot address the central issue [of] why and how meaningful and commercially viable skills and technology are created.

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