Does Growth Cause Structural Change, or Is it the Other Way Round? A Dynamic Panel Data Analyses for Seven OECD Countries
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.Download Info
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Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2009-034.Length:
Date of creation: 11 May 2009
Date of revision:
Handle: RePEc:jrp:jrpwrp:2009-034
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Related research
Keywords: structural change; economic growth; tertiarization; panel Granger-causality-test;Other versions of this item:
- Andreas Dietrich, 2012. "Does growth cause structural change, or is it the other way around? A dynamic panel data analysis for seven OECD countries," Empirical Economics, Springer, vol. 43(3), pages 915-944, December.
- L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
- O57 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-23 (All new papers)
- NEP-BEC-2009-05-23 (Business Economics)
- NEP-FDG-2009-05-23 (Financial Development & Growth)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Singh, Nirvikar & Cortuk, Orcan, 2010.
"Structural Change and Growth in India,"
Santa Cruz Department of Economics, Working Paper Series
qt7fd4n35w, Department of Economics, UC Santa Cruz.
- Cortuk, Orcan & Singh, Nirvikar, 2011. "Structural change and growth in India," Economics Letters, Elsevier, vol. 110(3), pages 178-181, March.
- Singh, Nirvikar & Cortuk, Orcan, 2010. "Structural Change and Growth in India," MPRA Paper 20867, University Library of Munich, Germany.
- 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.
- Dobrescu, Emilian, 2011.
"Sectoral Structure and Economic Growth,"
Journal for Economic Forecasting,
Institute for Economic Forecasting, vol. 0(3), pages 5-36, September.
- Dobrescu, Emilian, 2011. "Sectoral Structure and Economic Growth," Working Papers of Macroeconomic Modelling Seminar 112401, Institute for Economic Forecasting.
- 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.
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