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Dualism and cross-country growth regressions

  • Jonathan Temple

    ()

  • Ludger Wößmann

This paper develops empirical growth models suitable for dual economies, and studies the relationship between structural change and economic growth. Changes in the structure of employment will raise aggregate productivity when the marginal product of labor varies across sectors. 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 labor makes a significant contribution to the international variation in productivity growth. Copyright Springer Science+Business Media, LLC 2006

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File URL: http://hdl.handle.net/10.1007/s10887-006-9003-x
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Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 11 (2006)
Issue (Month): 3 (September)
Pages: 187-228

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Handle: RePEc:kap:jecgro:v:11:y:2006:i:3:p:187-228
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