Testing the growth effects of structural change

Jochen Hartwig

Structural Change and Economic Dynamics, 2012, vol. 23, issue 1, 11-24

Abstract: Against the backdrop of Baumol's model of ‘unbalanced growth’, a recent strand of literature has presented models that manage to reconcile structural change with Kaldor's ‘stylized fact’ of the relative constancy of per-capita real GDP growth. Another strand of literature goes beyond this, arguing that the expenditure shifts toward Baumol's ‘stagnant’ sector stimulate rather than dampen long-term economic growth because of the human capital-accumulating nature of major ‘stagnant’ services (like health care and education). This paper tests the relationship between structural change and economic growth empirically by means of a Granger-causality analysis of a panel of 18 OECD countries.

Keywords: Economic growth; Structural change; Human capital; Panel Granger-causality tests (search for similar items in EconPapers)
JEL-codes: C12 C23 I10 I20 J24 O41 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (29)

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Related works:
Working Paper: Testing the Growth Effects of Structural Change (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:23:y:2012:i:1:p:11-24

DOI: 10.1016/j.strueco.2011.09.001

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