Capital - output ratios , especially in those industries which improted technology , tended to decline
2.
Another measure of the efficiency of investment is the incremental capital - output ratio ( icor ) : the investment needed to generate an additional unit of output , measured as annual investment divided by the annual increase in gdp
3.
Meanwhile , as the state - owned sector can finance more funds from the banks , causing the over - stock of capital in the state - owned sector , the efficiency of capital in the state - owned sector decreases continually , and the capital - output ratio increases accordingly