Evolving comparative advantage, sectoral linkages, and structural change
Michael Sposi ()
No 231, Globalization Institute Working Papers from Federal Reserve Bank of Dallas
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.
JEL-codes: F10 F40 O14 (search for similar items in EconPapers)
Pages: 50 pages
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Journal Article: Evolving comparative advantage, sectoral linkages, and structural change (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:feddgw:231
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