Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/253693 
Year of Publication: 
2022
Series/Report no.: 
BOFIT Discussion Papers No. 4/2022
Publisher: 
Bank of Finland, Bank of Finland Institute for Emerging Economies (BOFIT), Helsinki
Abstract: 
This paper investigates how the sector-specific source or the changing sectoral composition of labor productivity has contributed to Ø-convergence, using a newly constructed eightsector database. The main findings are twofold. First, both within and sectoral reallocation have become important drivers of Ø-convergence in labor productivity. Second, agricultural productivity growth has been a significant contributor to Ø-convergence, whereas catch-up in other sectors has only contributed a small amount to convergence. The strong growth of the agriculture sector has been the most important driver of aggregate productivity convergence even though agricultural productivity itself in low-income countries is not converging to that in advanced economies.
Subjects: 
Labor productivity
Shift-share decomposition
Ø-decomposition
New sectoral database
JEL: 
O1
O11
O4
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-404-8
Document Type: 
Working Paper

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