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Corrigendum to: Structural Reforms and Labor Productivity Growth in Developing Countries: Intra or Inter-Reallocation Channel?

Author

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  • Maty Konte
  • Wilfried A Kouamé
  • Emmanuel B Mensah

Abstract

This paper employs sectoral data to draw conclusions on how structural reforms—implemented during the period 1975–2005—affected differences in cross-country aggregate labor productivity growth in developing countries. Most important, it explores how the effects of reforms on productivity growth are distributed between the intrasectoral and intersectoral components of labor productivity growth. The findings indicate that most of the trade, product market, and financial sector reforms have increased productivity growth. Looking at the subcomponents of labor productivity growth, the results show that structural reforms work mainly through the intra-allocative efficiency channel but not through the interallocative efficiency channel. The intrasectoral component is the main driver of the impacts of reforms on productivity growth, with a contribution that ranges from 76 percent to 96 percent depending on the reform measure considered. The paper also examines the role of labor market regulations and finds that labor market rigidity/flexibility matters for how specific reforms induce reallocation of resources within and across sectors.
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Suggested Citation

  • Maty Konte & Wilfried A Kouamé & Emmanuel B Mensah, 2022. "Corrigendum to: Structural Reforms and Labor Productivity Growth in Developing Countries: Intra or Inter-Reallocation Channel?," The World Bank Economic Review, World Bank, vol. 36(3), pages 800-800.
    • Handle: RePEc:oup:wbecrv:v:36:y:2022:i:3:p:800-800.
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    File URL: http://hdl.handle.net/10.1093/wber/lhac008
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    Cited by:

    1. Sahel, Wissal & El Abbassi, Idriss, 2025. "Structural change in Morocco: Rethinking industrial policies," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 412-426.
    2. Ablam Estel Apeti & Kwamivi Gomado, 2023. "IMF conditionality and structural reforms: Evidence from developing countries," WIDER Working Paper Series wp-2023-97, World Institute for Development Economic Research (UNU-WIDER).
    3. Mensah, Emmanuel B. & Owusu, Solomon & Foster-McGregor, Neil, 2023. "Productive efficiency, structural change, and catch-up within Africa," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 78-100.
    4. Douglas Kiarelly Godoy de Araujo, 2024. "Synthetic controls with machine learning: application on the effect of labour deregulation on worker productivity in Brazil," BIS Working Papers 1181, Bank for International Settlements.

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