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Deconstructing the BRICs: Structural Transformation and Aggregate Productivity Growth

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  • Voskoboynikov, I.
  • Timmer, M.P.
  • Vries, G.J. de
  • Erumban, A. A.
  • Wu H.X.

    (Groningen University)

Abstract

This paper studies structural transformation and its implications for productivity growth in the BRIC countries based on a new database that provides trends in value added and employment at a detailed 35-sector level. We find that for China, India and Russia reallocation of labour across sectors is contributing to aggregate productivity growth, whereas in Brazil it is not. However, this result is overturned when a distinction is made between formal and informal activities. Increasing formalization of the Brazilian economy since 2000 appears to be growth-enhancing, while in India the increase in informality after the reforms is growth-reducing.

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Bibliographic Info

Paper provided by Groningen Growth and Development Centre, University of Groningen in its series GGDC Research Memorandum with number GD-121.

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Date of creation: 2011
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Handle: RePEc:dgr:rugggd:gd-121

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Citations

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Cited by:
  1. Sepp, Jüri & Varblane, Uku, 2014. "The decomposition of productivity gap between Estonia and Korea," Discourses in Social Market Economy 2014-03, OrdnungsPolitisches Portal (OPO).
  2. Mitsukuni Nishida & Amil Petrin & Sašo Polanec, 2013. "Exploring Reallocation’s Apparent Weak Contribution to Growth," NBER Working Papers 19012, National Bureau of Economic Research, Inc.
  3. KARGI, Bilal, 2014. "The Effects of BRICS and MATIK Countries on World Economy and Cointegration Analysis The Long Term Relation G-7 Growth Rates (1962-2012)," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 262-272.
  4. Vatthanamixay Chansomphou & Masaru Ichihashi, 2013. "Structural change, labor productivity growth, and convergence of BRIC countries," IDEC DP2 Series 3-5, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
  5. Kathuria, Vinish & Rajesh Raj, S.N. & Sen, Kunal, 2013. "The effects of economic reforms on manufacturing dualism: Evidence from India," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1240-1262.
  6. Naudé, Wim & Szirmai, Adam & Lavopa, Alejandro, 2013. "Industrialization Lessons from BRICS: A Comparative Analysis," IZA Discussion Papers 7543, Institute for the Study of Labor (IZA).
  7. Lavopa, Alejandro & Szirmai, Adam, 2012. "Industrialization, employment and poverty," MERIT Working Papers 081, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  8. Bonatti, Luigi & Fracasso, Andrea, 2013. "Regime switches in the Sino-American co-dependency: Growth and structural change in China," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 1-32.

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