RESOURCE FLOW BETWEEN AGRICULTURE AND INDUSTRY —The Chinese Experience*—

The author has previously been engaged in a series of comparative studies on the role of the agricultural sector among the developing countries, being in doubt about the validity of the generally recognized view that in those countries much of the capital for industrialization has been supplied from this sector. For the purpose of re-examining this view, in this article the author analyses the resource outflow-inflow position of the agricultural sector in the Chinese economy and presents a grave question: Can the agricultural sector provide sufficient capital for industrial development in developing countries?     

LONG TERM MOVEMENT OF CAPITAL FORMATION —The Japanese Case, 1868–1940—

The high rate of investment sustained by a high rate of saving has accelerated continuously the rapid growth in the Japanese economy since the Meiji period. This paper presents the estimation of annual capital formation by sector-public and private-and by type of investment. The estimates have revealed many facts regarding the relation between some specific aspects of economic growth and the rate of capital formation; the different roles of capital formation attained in different sectors; and the relation between precedence and lag observed among the difflerent types of investment.