This article examines the e¤ects of sectorial shifts and structural transformation on the recent productivity path of Latin America. We use a four-sector (agriculture, industry, modern services and traditional services) general equilibrium model calibrated to the main economies in the region....

We study the impact of distortions in the investment goods sector on aggregate total factor productivity (TFP). We develop a two-sector neo- classical growth model in which TFP in the capital goods sector relative to TFP in the consumption sector is inversely related to the price of invest- ment...