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Deconstructing The BRICs: Structural Transformation And Aggregate Productivity Growth

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Author Info

  • Gaaitzen J. de Vries

    ()
    (Groningen Growth and Development Centre, Faculty of Economics and Business, University of Groningen)

  • Abdul A. Erumban

    (Groningen Growth and Development Centre, Faculty of Economics and Business, University of Groningen)

  • Marcel P. Timmer

    (Groningen Growth and Development Centre, Faculty of Economics and Business, University of Groningen)

  • Ilya B. Voskoboynikov

    ()
    (Groningen Growth and Development Centre, Faculty of Economics and Business, University of Groningen; Laboratory of Inflation and Economic Growth, National research university `Higher school of economics?, Moscow)

  • Harry X. Wu

    (Institute of Economic Research, Hitotsubashi University, Tokyo; The Conference Board China Centre, Beijing; Professor)

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 National Research University Higher School of Economics in its series HSE Working papers with number WP BRP 04/EC/2011.

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Length: 46 pages
Date of creation: 2011
Date of revision:
Publication status: Published in WP BRP Series: Economics / EC, December 2011, pages 1-46
Handle: RePEc:hig:wpaper:04/ec/2011

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Keywords: economic growth; new structural economics; structural change; BRIC countries.;

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References

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Citations

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Cited by:
  1. 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).
  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. 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).
  4. 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).
  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. 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)," MPRA Paper 55693, University Library of Munich, Germany.
  7. Sepp, Jüri & Varblane, Uku, 2014. "The decomposition of productivity gap between Estonia and Korea," Discourses in Social Market Economy 2014-03, OrdnungsPolitisches Portal (OPO).
  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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