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Dualism and cross-country growth regressions

  • John Temple
  • Ludger Woessmann


This paper examines whether growth regressions should incorporate dualism and structural change. If there is a differential across sectors in the marginal product of labour, changes in the structure of employment can raise aggregate total factor productivity. The paper develops empirical growth models that allow for this effect in a more flexible way than previous work. Estimates of the models imply sizeable marginal product differentials, and reveal that the reallocation of labour can explain a significant fraction of the international variation in TFP growth.

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Paper provided by Department of Economics, University of Bristol, UK in its series Bristol Economics Discussion Papers with number 04/560.

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Length: 54 pages
Date of creation: Sep 2004
Date of revision:
Handle: RePEc:bri:uobdis:04/560
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