The Role of the Structural Transformation in Aggregate Productivity
Margarida Duarte and
Diego Restuccia ()
The Quarterly Journal of Economics, 2010, vol. 125, issue 1, 129-173
We investigate the role of sectoral labor productivity in explaining the process of structural transformation—the secular reallocation of labor across sectors—and the time path of aggregate productivity across countries. We measure sectoral labor productivity across countries using a model of the structural transformation. Productivity differences across countries are large in agriculture and services and smaller in manufacturing. Over time, productivity gaps have been substantially reduced in agriculture and industry but not nearly as much in services. These sectoral productivity patterns generate implications in the model that are broadly consistent with the cross-country data. We find that productivity catch-up in industry explains about 50% of the gains in aggregate productivity across countries, whereas low productivity in services and the lack of catch-up explain all the experiences of slowdown, stagnation, and decline observed across countries.
References: Add references at CitEc
Citations: View citations in EconPapers (166) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: The Role of the Structural Transformation in Aggregate Productivity (2009)
Working Paper: The Role of the Structural Transformation in Aggregate Productivity (2007)
Working Paper: The Role of the Structural Transformation in Aggregate Productivity (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oup:qjecon:v:125:y:2010:i:1:p:129-173.
Access Statistics for this article
The Quarterly Journal of Economics is currently edited by Robert J. Barro, Elhanan Helpman, Lawrence F. Katz and Andrei Schleifer
More articles in The Quarterly Journal of Economics from Oxford University Press
Bibliographic data for series maintained by Oxford University Press ().