This paper considers the relative importance of investment and productivity in the growth of the G7 countries during the period
1960-89. Investment is the commitment of resources in the expectation of future returns to the investor. Productivity is identified
with 'spillovers' of benefits that do not provide incentives for investment. The great preponderance of growth in the US and
Canada is due to investment. Investment is more important than productivity for all of the G7 countries, except France, after
1973. Patterns of economic growth have converged for the G7 countries, but important differences remain.
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