EconPapers    
Economics at your fingertips  
 

Growth, sectoral composition, and the evolution of income levels

Jaime Alonso-Carrera () and Xavier Raurich

Journal of Economic Dynamics and Control, 2010, vol. 34, issue 12, 2440-2460

Abstract: We assert that the endowments of production factors cause cross-country differences in GDP by generating disparities in the sectoral composition. We characterize the dynamic equilibrium of a two-sector endogenous growth model with several consumption goods that are subject to minimum consumption requirements. In this model, economies with the same fundamentals but different endowments of capitals will end up growing at a common rate, although the long run sectoral composition of GDP will be different. Because the total factor productivity (TFP) in multisector models depends on sectoral structure, these differences in capital endowments will also generate sustained differences in TFPs.

Keywords: Sectoral; composition; Two-sector; growth; model; Minimum; consumption; Total; factor; productivity (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165-1889(10)00141-7
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Growth, sectoral composition, and the evolution of income levels (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:dyncon:v:34:y:2010:i:12:p:2440-2460

Access Statistics for this article

Journal of Economic Dynamics and Control is currently edited by J. Bullard, C. Chiarella, H. Dawid, C. H. Hommes, P. Klein and C. Otrok

More articles in Journal of Economic Dynamics and Control from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-23
Handle: RePEc:eee:dyncon:v:34:y:2010:i:12:p:2440-2460