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

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  • Ute Pieper

Abstract

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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  • Ute Pieper, 2003. "Sectoral regularities of productivity growth in developing countries--a Kaldorian interpretation," Cambridge Journal of Economics, Oxford University Press, vol. 27(6), pages 831-850, November.
  • Handle: RePEc:oup:cambje:v:27:y:2003:i:6:p:831-850
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    Cited by:

    1. Giorgio Fazio & Enza Maltese & Davide Piacentino, 2013. "Estimating Verdoorn law for Italian firms and regions," Letters in Spatial and Resource Sciences, Springer, vol. 6(1), pages 45-54, March.
    2. Lavopa, A., 2014. "Catching up and lagging behind in a balance-of-payments-constrained dual economy," MERIT Working Papers 042, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Dasgupta, Sukti & Singh, Ajit, 2006. "Manufacturing, Services and Premature Deindustrialization in Developing Countries: A Kaldorian Analysis," WIDER Working Paper Series 049, World Institute for Development Economic Research (UNU-WIDER).
    4. Ajit Singh & Sukti Dasgupta, 2005. "Will services be the new engine of economic growth in India?," Working Papers wp310, Centre for Business Research, University of Cambridge.
    5. Breisinger, Clemens & Diao, Xinshen & Thurlow, James & Yu, Bingxin & Kolavalli, Shashi L., 2007. "Accelerated growth and structural transformation: Assessing Ghana’s options to reach middle-income status," GSSP working papers 7, International Food Policy Research Institute (IFPRI).
    6. Rada, Codrina & von Arnim, Rudiger, 2012. "Structural transformation in China and India: A note on macroeconomic policies," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 264-275.
    7. Giorgio Fazio & Enza Maltese & Davide Piacentino, 2014. "The verdoorn law at the regional level: evidence from europe," RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO, FrancoAngeli Editore, vol. 2014(2), pages 34-47.
    8. Sukti Dasgupta & Ajit Singh, 2006. "Manufacturing, Services and Premature De-Industrialisation in Developing Countries: A Kaldorian Empirical Analysis," Working Papers wp327, Centre for Business Research, University of Cambridge.
    9. Pieper, Ute, 2002. "Patterns of inter-sectoral diffusion of technological growth: income, concentration, and public capital stocks," Research Memorandum 012, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    10. repec:ecr:col070:42659 is not listed on IDEAS
    11. Ricardo Bonilla González & Jorge Iván González, 2006. "Bien-estar y macroeconomía 2002-2006: el crecimiento inequitativo no es sostenible," PUBLICACIONES - CID 002064, UN - RCE - CID.
    12. Emanuele Millemaci & Ferdinando Ofria, 2014. "Kaldor-Verdoorn's law and increasing returns to scale: A comparison across developed countries," Journal of Economic Studies, Emerald Group Publishing, vol. 41(1), pages 140-162, January.
    13. Gisela Di Meglio & Jorge Gallego & Andrés Maroto & Maria Savona, 2015. "Services in Developing Economies: A new chance for catching-up?," SPRU Working Paper Series 2015-32, SPRU - Science and Technology Policy Research, University of Sussex.
    14. Millemaci, Emanuele & Ofria, Ferdinando, 2016. "Supply and demand-side determinants of productivity growth in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 37(C), pages 138-146.
    15. John E. King, 2010. "Kaldor and the Kaldorians," Chapters,in: Handbook of Alternative Theories of Economic Growth, chapter 7 Edward Elgar Publishing.
    16. Rivas, Diego & Abeles, Martín, 2011. "Growth versus development: different patterns of industrial growth in Latin America during the 'boom' years," Documentos de Proyectos 435, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

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