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Economic Development and Structural Change: The Role of Services

Author

Listed:
  • Carlos Dabús

    (Universidad Nacional del Sur – IIESS-CONICET, Argentina)

  • Fernando Delbianco

    (Universidad Nacional del Sur – INMABB-CONICET, Argentina)

Abstract

This work studies the structural transformation of the sectorial production shares along the development process, for a worldwide sample of both advanced and developing countries and for the different regions with the different that compose the total sample. The study is carried out for 39 countries during the 1960-2011 period. This explores the evolution of the structural transformation in the development process, and in particular the effect of the expansion of service sector on economic growth. First, it presents empirical evidence on an increasing share of industrial and mainly services sectors in the growth process, as for the worldwide sample as for different economic regions, and a hump-shaped relationship between industrial production and income. Then, this research points out that the higher participation of industry is favorable. In turn, except the business activities, services sector is harmful for economic growth, which confirms the intuition stated by Rodrik (2016).

Suggested Citation

  • Carlos Dabús & Fernando Delbianco, 2021. "Economic Development and Structural Change: The Role of Services," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 46(3), pages 67-86.
    • Handle: RePEc:ris:jecdev:0030
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    References listed on IDEAS

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    Cited by:

    1. Julián Salinas, 2025. "Unveiling structural change patterns: an unsupervised machine learning approach to long-term dynamics," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-17, December.

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    Keywords

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    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • 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

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