If one now combines variations in growth rates with variations in savings rate, it is easy to explain why different countries accumulate very different quantities of capital, and why the capital / income ratio has risen sharply since 1970. One particularly clear case is that of Japan: with a savings rate close to 15 percent a year and a growth rate barely above 2 percent, it is hardly surprising that Japan has over the long run accumulated a capital stock worth six to seven years of national income.
