A. Appendix

This appendix describes the calculation procedures and data sources for labor income shares and the rate of capital deepening for two different sectors (services and nonservices) in developing and developed countries. We use a static growth model, and by using GDP, GDP deflators, and employment data for each industry, we can analytically calculate factor shares of income and the rate of capital deepening for the two sectors. We review the effectiveness of the model by comparing the actual data with our calculations for developed countries and some developing countries where these data are available to use.
