Testing the Growth Effects of Structural Change

Jochen Hartwig

No 10-264, KOF Working papers from KOF Swiss Economic Institute, ETH Zurich

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 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 Grangercausality tests (search for similar items in EconPapers)
Pages: 34 pages
Date: 2010-09
New Economics Papers: this item is included in nep-fdg and nep-hrm
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Citations: View citations in EconPapers (3)

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http://dx.doi.org/10.3929/ethz-a-010705340 (application/pdf)

Related works:
Journal Article: Testing the growth effects of structural change (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:kof:wpskof:10-264

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