| Source of Growth | Components | Data | Share of Output Growth |
| Output growth | ΔY/Y | 3% | |
| Labour’s share | (1 – α) times | 0.67 | |
| Labour growth rate | ΔL/L | 1% | |
| Contribution of labour | 0.67 | ||
| Capital’s share | α times | 0.33 | |
| Capital growth rate | ΔK/K | 3% | |
| Contribution of capital | 0.99 | ||
| Contribution of productivity growth | ΔY/Y – (1 – α)(ΔL/L) – α(ΔK/K) | 1.34 | |
| Proportion of growth due to increase in total factor productivity = 1.34/3 = 0.44 | |||
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Source: Authors’ calculations. |
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