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Title:Dualism and cross-country growth regressions PDF Logo
Authors:Temple, Jonathan
Woessmann, Ludger
Issue Date:2004
Series/Report no.:CESifo working papers 1290
Abstract: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.
Subjects:growth
convergence
structural change
JEL:O1
O4
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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