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Dualism and Cross-Country Growth Regressions

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Author Info
Temple, Jonathan
Woessmann, Ludger

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Abstract

This paper develops empirical growth models suitable for dual economies, and studies the relationship between structural change and economic growth. Structural change matters because, if the marginal product of labour varies across sectors, changes in the structure of employment can raise aggregate productivity. The models in the paper incorporate this effect in a more flexible way than previous work. Estimates of the models imply sizeable marginal product differentials, and indicate that the reallocation of labour makes a significant contribution to the international variation in productivity growth.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5655.

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Date of creation: Apr 2006
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Handle: RePEc:cpr:ceprdp:5655

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Keywords: dualism structural change TFP growth wage differentials

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Find related papers by JEL classification:
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jonathan Temple, 2006. "Aggregate Production Functions and Growth Economics," International Review of Applied Economics, Taylor and Francis Journals, vol. 20(3), pages 301-317, July. [Downloadable!] (restricted)
  2. Sai Ding & John Knight, 2008. "Can the Augmented Solow Model Explain China's Economic Growth? A Cross-Country Panel Data Analysis," Economics Series Working Papers 380, University of Oxford, Department of Economics. [Downloadable!]
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