Structural Change and Its Impact on Productivity in Japan, Korea, and Singapore (1970-2000)
This paper examines the impact of structural change on productivity through a decomposition of aggregate manufacturing productivity growth in Korea, Singapore, and Japan over the period 1970-2000. First, the shift-share analysis is utilized to measure the impact of the allocation of labor among manufacturing industries on aggregate labor productivity. Next, the impact of the allocation of labor and capital on total factor productivity (TFP) growth is analyzed. The findings show weak support for the positive impact on aggregate productivity of reallocation of factor inputs for Japan and Korea, and a positive impact for Singapore.
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