Decomposing this growth into its components in a growth accounting exercise indicates that about 4½ percentage points of this growth is due to increased inputs of labour and capital, with all other influences accounting for about 3½% of GNP growth.
Some part of these other influences that increase growth may be due to “new economy” effects associated with structural changes in the economy and the contribution of foreign direct investment, mainly from the US. However, the greater part of the overall strong growth performance is due to the substantive increase in inputs of capital and labour in economic activity.