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Sectoral regularities of productivity growth in developing countries--a Kaldorian interpretation

Listed author(s):
  • Ute Pieper
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    This paper provides a Kaldorian interpretation for empirical regularities of productivity growth at the sectoral level of the economy. The statistical evidence is based on a dataset drawn from internationally compatible time series for employment and value added in 30 developing countries. Based on novel non-linear statistical techniques the findings show: (i) a regular pattern of positive sectoral employment elasticities with respect to output growth; (ii) robust differences across sectors in the magnitude of the employment elasticities; and (iii) employment elasticities for all sectors that are significantly less than unity, suggesting strong evidence for increasing returns at the sector level of the economy. Copyright 2003, Oxford University Press.

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    Article provided by Oxford University Press in its journal Cambridge Journal of Economics.

    Volume (Year): 27 (2003)
    Issue (Month): 6 (November)
    Pages: 831-850

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    Handle: RePEc:oup:cambje:v:27:y:2003:i:6:p:831-850
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    1. A. P. Thirlwall, 1983. "A Plain Man's Guide to Kaldor's Growth Laws," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 5(3), pages 345-358, April.
    2. Blanchard, Olivier Jean & Quah, Danny, 1989. "The Dynamic Effects of Aggregate Demand and Supply Disturbances," American Economic Review, American Economic Association, vol. 79(4), pages 655-673, September.
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    6. Ute Pieper, 2000. "Deindustrialisation and the social and economic sustainability nexus in developing countries: Cross-country evidence on productivity and employment," Journal of Development Studies, Taylor & Francis Journals, vol. 36(4), pages 66-99.
    7. Rowthorn, R E, 1979. "A Note on Verdoorn's Law," Economic Journal, Royal Economic Society, vol. 89(353), pages 131-133, March.
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    12. Dixon, R & Thirlwall, A P, 1975. "A Model of Regional Growth-Rate Differences on Kaldorian Lines," Oxford Economic Papers, Oxford University Press, vol. 27(2), pages 201-214, July.
    13. Stanislaw Gomulka, 1983. "Industrialization and the Rate of Growth: Eastern Europe 1955-75," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 5(3), pages 388-396, April.
    14. Nelson, Richard R, 1998. "The Agenda for Growth Theory: A Different Point of View," Cambridge Journal of Economics, Oxford University Press, vol. 22(4), pages 497-520, July.
    15. Jefferson, Gary H, 1988. "The Aggregate Production Function and Productivity Growth: Verdoorn's Law Revisited," Oxford Economic Papers, Oxford University Press, vol. 40(4), pages 671-691, December.
    16. Bairam, Erkin I, 1987. "The Verdoorn Law, Returns to Scale and Industrial Growth: A Review of the Literature," Australian Economic Papers, Wiley Blackwell, vol. 26(48), pages 20-42, June.
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    18. Destefanis, Sergio, 2002. "The Verdoorn Law: Some Evidence from Non-parametric Frontier Analysis," MPRA Paper 60954, University Library of Munich, Germany.
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