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Evolving comparative advantage, sectoral linkages, and structural change

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  • Sposi, Michael J.

    () (Federal Reserve Bank of Dallas)

Abstract

I quantitatively examine the effects of location-and sector-specific productivity growth on structural change across countries from 1970-2011. The results shed new light on the “hump shape" in industry's share in GDP across levels of development. There are two key features. First, otherwise identical changes in the composition of final demand translate differently into changes in the composition of value added because of systematic differences in sectoral linkages. Second, the mapping between sector-specific productivity and the composition of final demand systematically differs because of the relative importance of two components within final demand: final domestic expenditures and net exports.

Suggested Citation

  • Sposi, Michael J., 2015. "Evolving comparative advantage, sectoral linkages, and structural change," Globalization Institute Working Papers 231, Federal Reserve Bank of Dallas.
  • Handle: RePEc:fip:feddgw:231
    DOI: 10.24149/gwp231
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    Cited by:

    1. Jaime Alonso-Carrera & Giulia Felice & Xavier Raurich, 2018. "Inequality and Structural Change under Non-Linear Engels' Curve," UB Economics Working Papers 2018/374, Universitat de Barcelona, Facultat d'Economia i Empresa, UB Economics.
    2. repec:asi:ajemod:2018:p:476-500 is not listed on IDEAS
    3. Ricardo Reyes-Heroles, 2018. "Globalization and Structural Change in the United States: A Quantitative Assessment," 2018 Meeting Papers 1027, Society for Economic Dynamics.
    4. Tomasz Swiecki, 2017. "Determinants of Structural Change," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 24, pages 95-131, March.
    5. Duernecker, Georg & Herrendorf, Berthold & Valentinyi, Akos, 2017. "Structural Change within the Service Sector and the Future of Baumol's Disease," CEPR Discussion Papers 12467, C.E.P.R. Discussion Papers.
    6. Akos Valentinyi & Georg Duernecker, 2017. "Unbalanced Growth Slowdown," 2017 Meeting Papers 822, Society for Economic Dynamics.
    7. Logan T. Lewis & Ryan Monarch & Michael J. Sposi & Jing Zhang, 2018. "Structural Change and Global Trade," International Finance Discussion Papers 1225, Board of Governors of the Federal Reserve System (U.S.).
    8. Lidia Smitkova, 2018. "Does Openness Matter for Structural Change?," 2018 Meeting Papers 257, Society for Economic Dynamics.
    9. Michael Sposi & Jing Zhang & Kei-Mu Yi, 2018. "Accounting for Structural Change Over Time: A Case Study of Three Middle-Income Countries," 2018 Meeting Papers 1141, Society for Economic Dynamics.
    10. Rodrigo Adão & Costas Arkolakis & Federico Espósito, 2019. "Spatial Linkages, Global Shocks, and Local Labor Markets: Theory and Evidence," Cowles Foundation Discussion Papers 2163, Cowles Foundation for Research in Economics, Yale University.
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    12. Mariarosaria Comunale & Giulia Felice, 2019. "An empirical investigation of the relationship between trade and structural change," Bank of Lithuania Working Paper Series 62, Bank of Lithuania.
    13. repec:taf:ecsysr:v:30:y:2018:i:1:p:85-104 is not listed on IDEAS
    14. repec:fip:feddgm:00030 is not listed on IDEAS
    15. Diao, Xinshen & McMillan, Margaret, 2018. "Toward an Understanding of Economic Growth in Africa: A Reinterpretation of the Lewis Model," World Development, Elsevier, vol. 109(C), pages 511-522.

    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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