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Deconstructing The BRICs: Structural Transformation And Aggregate Productivity Growth

Gaaitzen de Vries, Abdul Erumban, Marcel Timmer (), Ilya Voskoboynikov () and Harry Wu ()
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Abdul Erumban: Groningen Growth and Development Centre, Faculty of Economics and Business, University of Groningen

No WP BRP 04/EC/2011, HSE Working papers from National Research University Higher School of Economics

Abstract: This paper studies structural transformation and its implications for productivity growth in the BRIC countries based on a new database that provides trends in value added and employment at a detailed 35-sector level. We find that for China, India and Russia reallocation of labour across sectors is contributing to aggregate productivity growth, whereas in Brazil it is not. However, this result is overturned when a distinction is made between formal and informal activities. Increasing formalization of the Brazilian economy since 2000 appears to be growth-enhancing, while in India the increase in informality after the reforms is growth-reducing

Keywords: economic growth; new structural economics; structural change; BRIC countries. (search for similar items in EconPapers)
JEL-codes: C80 N10 O10 (search for similar items in EconPapers)
Date: 2011
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Published in WP BRP Series: Economics / EC, December 2011, pages 1-46

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Journal Article: Deconstructing the BRICs: Structural transformation and aggregate productivity growth (2012) Downloads
Working Paper: Deconstructing the BRICs: Structural Transformation and Aggregate Productivity Growth (2011) Downloads
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