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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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    Cited by:

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    2. O. S. Sukharev & E. N. Voronchikhina, 2020. "Structural growth policy in Russia: Resources, technology-intensity, risk, and industrialisation," Journal of New Economy, Ural State University of Economics, vol. 21(1), pages 29-52, March.
    3. Samaniego, Roberto & Sun, Juliana, 2016. "Gray's Anatomy: Understanding Uncertainty," MPRA Paper 72787, University Library of Munich, Germany.
    4. Dongyeol Lee, 2019. "Transmission of Domestic and External Shocks through Input-Output Network: Evidence from Korean Industries," IMF Working Papers 2019/117, International Monetary Fund.
    5. Bridgman, Benjamin, 2016. "Home productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 71(C), pages 60-76.
    6. Sen, Ali, 2020. "Structural change within the services sector, Baumol's cost disease, and cross-country productivity differences," MPRA Paper 99614, University Library of Munich, Germany.
    7. Lee, Dongyeol & Zhang, Huan, 2022. "Export diversification in low-income countries and small states: Do country size and income level matter?," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 250-265.
    8. Zhou, Xiaoxiao & Pan, Zixuan & Shahbaz, Muhammad & Song, Malin, 2020. "Directed technological progress driven by diversified industrial structural change," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 112-129.
    9. Dongyeol Lee, 2020. "The role of R&D and input trade in productivity growth: innovation and technology spillovers," The Journal of Technology Transfer, Springer, vol. 45(3), pages 908-928, June.
    10. Iwaisako, Tatsuro, 2023. "Optimal mix of R&D subsidy and patent protection in a heterogeneous-industry R&D-based growth model," Journal of Economic Dynamics and Control, Elsevier, vol. 154(C).
    11. Yu Liu & Fangchen Shi & Hongman He & Liyin Shen & Wenzhu Luo & Lingyun Sun, 2021. "Study on the Matching Degree between Land Resources Carrying Capacity and Industrial Development in Main Cities of Xinjiang, China," Sustainability, MDPI, vol. 13(19), pages 1-17, September.
    12. Kim, Bae-Geun, 2023. "Technological advances in manufacturing and their effects on sectoral employment in the Korean economy," Economic Modelling, Elsevier, vol. 126(C).
    13. Oleg Sukharev, 2021. "Measuring the Contribution of the “Knowledge Economy” to the Economic Growth Rate: Comparative Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(4), pages 1809-1829, December.
    14. O. Sukharev S. & О. Сухарев С., 2019. "Структурная политика: к новой инвестиционной модели экономического роста // Structural Policy: Towards a New Investment Model of Economic Growth," Финансы: теория и практика/Finance: Theory and Practice // Finance: Theory and Practice, ФГОБУВО Финансовый университет при Правительстве Российской Федерации // Financial University under The Government of Russian Federation, vol. 23(2), pages 84-104.
    15. Evers, Michael & Niemann, Stefan & Schiffbauer, Marc, 2020. "Inflation, liquidity and innovation," European Economic Review, Elsevier, vol. 128(C).
    16. Dongyeol Lee, 2019. "Trade Linkages and International Business Cycle Comovement: Evidence from Korean Industry Data," IMF Working Papers 2019/116, International Monetary Fund.
    17. Freeman, Richard B. & Yang, Buyuan & Zhang, Baitao, 2023. "Data deepening and nonbalanced economic growth," Journal of Macroeconomics, Elsevier, vol. 75(C).
    18. Atolia, Manoj & Loungani, Prakash & Marquis, Milton & Papageorgiou, Chris, 2020. "Rethinking development policy: What remains of structural transformation?," World Development, Elsevier, vol. 128(C).
    19. Jia, Fei & Ma, Xiuying & Xu, Xiangyun & Xie, Lijuan, 2020. "The differential role of manufacturing and non-manufacturing TFP growth in economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 174-183.
    20. Mustapha Douch & Huw Edwards & Sushanta Mallick, 2022. "The UK Productivity Puzzle: Does Firm Cohort matter for their Performance following the Financial Crisis?," Bank of Lithuania Working Paper Series 101, Bank of Lithuania.
    21. Zhou, Xiaoxiao & Cai, Ziming & Tan, Kim Hua & Zhang, Linling & Du, Juntao & Song, Malin, 2021. "Technological innovation and structural change for economic development in China as an emerging market," Technological Forecasting and Social Change, Elsevier, vol. 167(C).

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    More about this item

    Keywords

    Structural transformation; Stages of diversification; Productivity differences; Economic development;
    All these keywords.

    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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