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Does Growth Cause Structural Change, or Is it the Other Way Round? A Dynamic Panel Data Analyses for Seven OECD Countries

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  • Andreas Dietrich

    ()
    (Darmstadt University of Technology)

Abstract

In economic development, structural change among the three main sectors of an economy accompanies with aggregate economic growth. Nevertheless the question whether economic growth causes structural change or change in the economic structure causes aggregate growth is still unanswered. To shed some more light on this issue, this study examines a Granger- causality test in a panel environment to determine the causality of economic growth and structural change measured either in terms of employment shares or in terms of real value added shares. Estimation and analysis with annual data of seven OECD countries covering the period from 1960-2004 show that the causality appears to be heterogeneous.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2009-034.

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Date of creation: 11 May 2009
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Handle: RePEc:jrp:jrpwrp:2009-034

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Keywords: structural change; economic growth; tertiarization; panel Granger-causality-test;

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Cited by:
  1. Law, Siong Hook & Lim, Thong Cheen & Ismail, Normaz Wana, 2013. "Institutions and economic development: A Granger causality analysis of panel data evidence," Economic Systems, Elsevier, vol. 37(4), pages 610-624.
  2. Singh, Nirvikar & Cortuk, Orcan, 2010. "Structural Change and Growth in India," MPRA Paper 20867, University Library of Munich, Germany.
  3. Ikhlaas Gurrib, 2011. "The Impact of Mining and Services Industries on the Structural Change of Australia," International Journal of Economic Sciences and Applied Research (IJESAR), Technological Educational Institute (TEI) of Kavala, Greece, vol. 4(2), pages 35-51, August.
  4. Viciu Tania-Georgia & Vasile Adrian & Costea Carmen-Eugenia, 2012. "A New Appraisal Of The Relationship Between Economic Growth And The Economic Structure," Romanian Economic Business Review, Romanian-American University, vol. 6(1), pages 10-18, May.
  5. Dobrescu, Emilian, 2011. "Sectoral Structure and Economic Growth," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 5-36, September.
  6. Marta C. N. Simões & Adelaide Duarte, 2013. "Human Capital and Growth in a Services Economy: the Case of Portugal," GEMF Working Papers 2013-21, GEMF - Faculdade de Economia, Universidade de Coimbra.

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