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Productivity Growth and Structural Transformation

Author

Listed:
  • Roberto Samaniego

    (George Washington University)

  • Juliana Sun

    (Singapore Management University)

Abstract

Economies diversify and then re-specialize as they develop. These "stages of diversification" may result from productivity-driven structural change if initially resources are concentrated in industries other than those that dominate economic structure in the long run. A calibrated multi-industry growth model with many countries and with industry differences in productivity growth rates replicates the main features of the "stages of diversification". We also present evidence that countries systematically shift resources towards manufacturing industries with rapid productivity growth, and towards sectors with low productivity growth, consistent with the model and supporting the "productivity mechanism" for structural transformation. (Copyright: Elsevier)

Suggested Citation

  • Roberto Samaniego & Juliana Sun, 2016. "Productivity Growth and Structural Transformation," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 21, pages 266-285, July.
    • Handle: RePEc:red:issued:15-24
    DOI: 10.1016/j.red.2015.06.003
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    References listed on IDEAS

    as
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    More about this item

    Keywords

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    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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