Growth in labor productivity = Growth in TFP + Growth in Capital Deepening.
To which country capital deepening as a source of growth was most important?
Country A = Growth in Labor Productivity = 2.4%, Growth in TFP=0.6% -> Capital deepening = 1.8%
Country B = Growth in Labor Productivity = 1.6%, Growth in TFP=0.8% -> Capital deepening = 0.8%
Country C = Growth in Labor Productivity = 0.8%, Growth in TFP= - 0.3%-> Capital deepening = 1.1%
According to the solutions, Capital Deepening was most important for Country A. How come?
Without Capital Deepening Country C would have had negative growth? So you could say that Capital Deepening was the source of ALL of the growth for Country C, but only 75% for Country A (1.8/2.4=75%)