ABSTRACT
The prediction was made at a time when the mainland economy began to boom and its savings rate reached 35 percent, higher than those in other developing countries. When the ratio relates total investment to an increase in total output of the economy, problems arise as to possible changes in the structure of output and in the sectoral ICORs over time. A simple regression of the stock of working capital on total fixed capital based on data for 1952 to 1985 indicated a very close relationship between the two. Mainland China plans to increase the output of oil from 106 to 230 million tons in 1980-2000, on the assumption that offshore oil will contribute 100 million tons by the year 2000. In addition to the demand for new productive or nonproductive investment, there is the urgent need to renovate the existing plants.
