Dualism and cross-country growth regressions

This paper examines whether growth regressions should incorporate dualism and structural change. If there is a differential across sectors in the marginal product of labour, changes in the structure of employment can raise aggregate total factor productivity. The paper develops empirical growth models that allow for this effect in a more flexible way than previous work. Estimates of the models imply sizeable marginal product differentials, and reveal that the reallocation of labour can explain a significant fraction of the international variation in TFP growth.

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Year of publication:	2004
Authors:	Temple, Jonathan ; Woessmann, Ludger
Publisher:	Munich : Center for Economic Studies and Ifo Institute (CESifo)
Subject:	Wirtschaftswachstum \| Regression \| Produktivität \| Dualökonomie \| Strukturwandel \| Sektorale Beschäftigungsstruktur \| Schätzung \| Welt \| growth \| convergence \| structural change

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Series:	CESifo Working Paper ; 1290
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	856945749 [GVK] hdl:10419/18928 [Handle]
Classification:	O1 - Economic Development ; O4 - Economic Growth and Aggregate Productivity
Source:	EconStor