Screenshot (129)

Screenshot (130)
Conclusion: high savings rates are necessary, but insufficient, for strong real GDP growth. Even the oil states will have this pattern, BTW, for obvious reasons. The U.S. savings rate is around 18% of GDP.

This is from Vladimir Popov’s book Mixed Fortunes: An Economic History of China, Russia, and the West, which proposes a mostly wrong theory of the Great Convergence and Great Divergence. It’s too colored by the Soviet experience to make any strong conclusions about either early European industrializers or the Asian Tigers by my taste. I found it when searching for information about the ancient Egyptian economy.

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