Table 4: Sources of economic growth per group of countries and subperiods: % change.

VariableGroup of countries*Annual averages in the sub-periodsAnnual averageAccumulated
1966–19701971–19751976–19801981–19851986–19901991–19951996–2000

GDP growthDeveloped5.333.923.442.303.622.043.574.04228.22
Developing5.295.145.641.933.384.122.904.74301.10
Difference0.03−1.16−2.080.370.23−2.000.65−0.67−18.17

Capital accumulationDeveloped5.585.844.343.142.992.442.534.48272.60
Developing6.546.726.595.043.854.133.596.09489.67
Difference−0.90−0.83−2.11−1.81−0.82−1.63−1.02−1.52−36.81

Labor expansionDeveloped0.971.190.890.770.590.850.650.9834.14
Developing2.952.822.812.682.412.151.912.96139.92
Difference−1.93−1.59−1.87−1.86−1.78−1.27−1.24−1.92−44.09

Change in GDP per workerDeveloped4.322.702.531.523.011.172.913.03144.68
Developing2.272.252.76−0.730.951.920.981.7367.18
Difference2.000.43−0.222.272.04−0.741.911.2846.36

Change in capital per workerDeveloped4.574.593.422.352.391.571.873.46177.76
Developing3.493.793.682.301.401.941.653.04145.78
Difference1.050.77−0.250.050.98−0.360.220.4113.02

Change in TFPDeveloped1.321.561.341.040.970.680.591.2545.14
Developing0.07−0.10−0.23−0.11−0.16−0.35−0.37−0.21−6.11
Difference1.251.661.581.151.141.030.971.4654.58

Technical progressDeveloped0.540.440.330.210.09−0.04−0.170.237.22
Developing0.04−0.06−0.16−0.28−0.41−0.53−0.66−0.34−9.76
Difference0.500.500.490.490.500.490.490.5818.82

Change in technical efficiencyDeveloped0.560.530.490.460.430.400.380.5417.63
Developing0.430.400.370.350.330.310.290.4113.13
Difference0.130.130.120.110.100.100.090.133.98

Change in scale efficiencyDeveloped0.050.060.060.060.070.070.070.072.25
Developing0.010.070.100.100.130.140.140.123.53
Difference0.040.00−0.04−0.04−0.07−0.07−0.07−0.04−1.24

Change in allocative efficiencyDeveloped0.170.520.450.300.380.240.310.3912.50
Developing−0.40−0.50−0.54−0.28−0.21−0.26−0.14−0.39−10.99
Difference0.571.021.000.590.590.490.450.7826.40

* The values in this table were calculated by taking simple arithmetic averages over the countries comprising each group of the rates of change for each subperiod. The accumulated effects as well as the annual average numbers were computed by compounding (or discounting) rates. The relative factor prices and relative marginal productivity of each period used in our calculations refers to the last year of the 5-year interval; for example, the values of , , , and used to estimate the allocative efficiency changes between 1966 and 1970 refer to 1970.