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Title:Labor productivity and energy use in a three sector model: An application to Egypt PDF Logo
Authors:von Arnim, Rudiger
Rada, Codrina
Issue Date:2011
Series/Report no.:Working Paper, University of Utah, Department of Economics 2011-06
Abstract:This paper presents a model of a developing economy with three sectors - a modern sector producing manufactures and services, a traditional sector producing agricultural goods, and a third sector providing energy. Modern and energy sector are assumed to be demand-constrained; the agricultural sector is supply-constrained. Simulation exercises confirm insights of existing theory on structural heterogeneity: A price-clearing agricultural sector can impose an inflationary barrier on growth. Further, emphasis is placed on the sources of productivity growth. Specifically, higher energy intensity rather than increases in energy productivity enable labor productivity growth, with the attendant complications for 'green growth'.
Subjects:Structural heterogeneity
Multi-sector model
Energy use
JEL:O41
Q43
C63
Document Type:Working Paper
Appears in Collections:Department of Economics Working Paper Series, University of Utah

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