More on growth-reducing structural change

In an earlier post, I presented some preliminary results on what I called “growth-reducing structural change.” This refers to the highly anomalous and puzzling phenomenon whereby labor moves from high- to low-productivity activities.

In joint work with Maggie McMillan (Tufts and IFPRI) we have now updated and expanded our dataset and have more complete results. Here is a preview:

This shows a decomposition of aggregate labor productivity growth during 1990-2005 between two components: (i) labor productivity growth within sectors (“within”); and (ii) the economy-wide productivity effects of labor reallocation across sectors (“structural”). The economy is disaggregated into nine sectors.

Remarkably, the African countries in our sample (Ethiopia, Ghana, Kenya, Malawi, Mauritius, Nigeria, Senegal, South Africa, and Zambia) have experienced even more growth-reducing structural change than the Latin American countries. This runs totally against our expectations for a set of countries at such low levels of development (for the most part), where a Lewis-style dual economy growth dynamic ought to be in place.

The chart makes clear that the bulk of the difference in economic performance since 1990 between Asia, on the one hand, and Latin America and Africa, on the other, is accounted for by differences in patterns of structural change. Asian countries have, on average, experienced growth-enhancing structural change; not so the others.

Note that structural change has played a negligible role in the high-income countries (bottom bars, denoted by “HI”). This is as expected since inter-sectoral productivity gaps tend to be small in rich countries.

What explains these differences? We discuss several hypotheses in the paper, but one stands out: the pattern of comparative advantage. Countries with a comparative advantage in primary products tend to have a much worse performance in structural change than countries than ones without.

This is shown in the next chart, which looks at the (partial) correlation between the share of raw materials in exports (horizontal axis) and the contribution of structural change to overall productivity growth.

Note that I have regional dummies here (along with the initial share of agricultural employment) as controls, so we are picking up the effects differences within regions (and not broad regional differences).

The paper that discusses these and related findings is here.

Comments

[Peter Richens]

This recent World Bank study would seem to suggest the type of structural change you observe in other African countries does not apply to Uganda:
http://dl.dropbox.com/u/5403055/Inclusive%20growth-Feb%252011.pdf
Overall, poor within sector productivity growth has been compensated for by 'good' intersectoral shifts. On closer examination (table 7) however, this is driven by construction and real estate - sectors which have high levels of productivity but have recently experienced negative productivity growth, raising the question of how sustainable the reliance on such structural change can be.

[Account Deleted]

http://www.rafasraf.com

Thanks for sharing.

[Account Deleted]

Capitalism cherishes voluntary contracts and interest rates that are determined IBM Laptop BatteryIBM Laptop Battery

[Account Deleted]

http://www.rafsistemleri.eu

Thanks a lot for sharing.

[Account Deleted]

http://www.mbtfootwearusa.com/

[Bizproject Bizproject]

בניית אתרים
ברמה מקצועית יש רק ב2all שהיא החברה הגדולה והמקצועית ביותר בתחום בניית האתרים הארץ, בוני האתרים שלנו בונים אתרים ברמה גבוה מאוד, הם הוכשרו בבתי ספר מיוחדים לבוניית אתרים שבו מרצים על בניית אתרים בוני אתרים מקצועיים המנוסים מזה שנים בתחום האינטרנט והרשת
http://web.2all.co.il

[Account Deleted]

sumomaxObesity is a health problem that is obesity. An important problem in both developed and developing countries in particular. Attenuation of the methods and products for the more popular, while the minority part of the problem concerning the weakness of not showing enough effort.

Fried foods, pastries, sweet foods such as calorie consumption can not lose weight in a healthy manner. Essential nutrients our bodies need to take as needed.

[Ricardotpm]

Dani,

I´ve got a question and a comment. I hope you read these all. First, the comment. I´ve been working on this issues in Cuba for three years. I wrote my Master thesis on the topic and i found that Cuba stands more in line with the Latin American experience. The question is: what do you mean by weighted and unweighted structural change?
Thanks.

[Account Deleted]

What are you watching now? Doctor Who BOXSET 1-4,The office DVD BoxSet,Supernatural DVD BoxSet? i totally got into Being Criminal Minds DVD Boxset and Two and a Half Men on DVD these days. i think they are one of the best tv shows made ever. I have watched them 3 times. Now I will focus more on Pretty Little Liars Season 1 DVD to figure out who is "A". Curb Your Enthusiasm DVD is also amazing even if i have never watched it before!

[Account Deleted]

Quickest way to lose weight:-
http://www.officialweightlossnow.com

[auto scanner]

I have watched them 3 times. Now I will focus more on Pretty Little Liars Season 1 DVD to figure out who is "A". Curb Your Enthusiasm DVD is also amazing even if i have never watched it before!Auto Scanner

[Account Deleted]

Thanks.
bipolar 2 test:- http://www.bipolardisorderliving.com

[Account Deleted]

Thanks for the post. Maximum Money Blueprints =
http://maximummoneyblueprint.com

[Jamieloois]

I think your FT was quite good. I want to add one hiphone important thing, though. And that is, we should not forget that the ongoing bogus KCK trial is also almost entirely a product of wholesale Gulenists and that lousy newspaper that calls itself Zaman, just like this new wave of journalist arrests, and the Sledgehemmer case. Let us not forget that hundreds of elected Kurdish politicians and activists are in prison right now for doing nothing more than exercising their fundamental human rights. 2945abc45 0422

[Account Deleted]

Thank you for sharing,It's so lucky to read your site,it is full of helpful message.I want we both can do much better in the future.It fantastic honour if you can go to our website,and present us some suggession.Thanks to the person who chose to make this post, this was extremely informative for me. You should continue this great work.The materials that pandora uk cause silver tarnishing include eggs, rubber bands, wood, onions, etc. so, the fact remains that avoiding pandora bracelets

[Account Deleted]

Nice post.Thank you for taking the time to publish this information very useful!
http://www.volumerates.com/

[Tabletpcunion]

Good post. I LOVE IT.
android tablet

[Account Deleted]

Agree with what you say. The more friends, usually there, we just add them to friends, without continued with a wonderful social relations.

[Account Deleted]

Excellent! Thank you for sharing these valuable experience with us. What you have displayed really helped us a lot!http://www.christianlouboutinsonsales.com/

[Account Deleted]

Many places and centers offer business and trade promotions to both buyers and supplier.What about the differences in skill intensities across industries? The job losses in the relatively unskilled-labor intensive battery industry should have little effect on the relatively skilled-labor intensive machinery
sexshop
sexyshop
sexshop online
alongador peniano

[Account Deleted]

donne russe thanks for this great information it really helps a lot for me. Good food for thought here. Very nicely written. Really makes think. Thanks.
femmes russes

[Lena Kong]

Fashion designer Alexander McQueen, who committed suicide in February last year, left £50,000 of his £16 million fortune to his beloved pet dogs, details of his will http://www-canada-goose.com/

[Jaime Rob]

I agree with you
Modded Xbox 360 controller

[Jaime Rob]

It was a very good post

Canon Pixma MX882

[Account Deleted]

Thanks for the help, it's been very useful. I'm truly grateful and really impressed. russian girls

[Account Deleted]

Thank you very much. I’m going to put this too good use.
nyc locksmith

brooklyn locksmiths

[slrlense01]

thank you very much dani..

http://bestpregnancyblogs.com
http://bestpregnancyblogs.com/dizziness-during-pregnancy/

[Vin Ke]

I enjoyed the article and comments, and would prefer not to nit-pick over such minor details... oil expellers

[Vin Ke]

All it does is provide some free labour for the employer, which is a wholly undesirable end product. vegetable oil press

[עוז פוני]

פוני מטבחים עיצוב ארונות מטבח ברמה אחרת ובמחירים ללא תחרות

מטבחים זולים

http://www.pony.co.il/PAGE7.asp

[Vin Ke]

Self-employment is just like any other LED Light Company in one significant respect: If you don’t love what you’re doing, you’re going to be miserable.Biomass Pellet Mill

[Kilymom]

Canada Goose
the singer Lara Fabian is widely known in the French-speaking world, but only had a couple of Billboard hits in the U.S., whereas the francophone Canadian singer Celine Dion is well known in both the French-speaking world and in the U.S.

[Account Deleted]

You got a actually valuable blog. I’ve been here reading for about an hour. I’m a newbie and your success is very a lot an inspiration for me.
http://bit.ly/ukDgWr

[Lifenzhu]

At 1827 in Thornthwaite, he found that the rocks of Skiddaw had the best tone of all and endeavoured to produce an instrument on a larger scale than Crosthwaites, which would have every musical note. The geological name for the rock both Crosthwaite and Richardson used for their instruments is hornfels. It took Richardson almost thirteen years to collect and shape enough individual notes of hornfels to make an eight-octave range. The massive task of assembling this instrument consumed Joseph so absolutely that he and his family were reduced to poverty. Finally, in 1840, he completed his own lithophone, now known as 'The Richardson Set'.
http://bit.ly/ubAjYJ

[Vin Ke]

even seasoned and highly-skilled candidates are finding themselves in need of the professional placement services that staffing agencies provide..
dual saw

[Lena Kong]

To know the counter, generate a precise judgement on your have personality in the past hand. http://www.christianlouboutinsalenet.com/ Christian Louboutin Sale

[Vin Ke]

However, the superintendent of schools arranged for each teacher to receive a turkey for Christmas. I often wondered whether he was sending the teachers a message.
Crystallized Ginger

[Account Deleted]

hay man look at this post ...

Web Videos
Demo Videos

[Vin Ke]

I really like what you have acquired here, certainly like what you are saying and the way in which you say it. Dried Strawberry

[Account Deleted]

Hey great stuff, thank you for sharing this useful information and i will let know my friends as well.
medicine forum

[Account Deleted]

You made some good points .I did a little research on the topic and found that most people agree with your blog. Thanks.
drug forum

[Lily Yago]

Your writing skills are really emaculate, I wish I was half as good as you.

Nike free run sale http://nikefreerunsaler.net, Nike free run 2.

[Vin Ke]

People are always happy to base products off of other people's work, and Android provides a great selling point with minimal investment. Biomass Pelletizing Plant

[Vin Ke]

When others see that you can answer questions or provide advice, you are more likely to be given the formal power of a title. Act boldly - even if you’re not bold. wood pellet mil

[Account Deleted]

Saying thank you is a virtue. It is plausible learning to utter such. Some don't even dare to say such.Formula 21 Formen Gece Gözlüğü panax

[orjin krem]

I try and learn something new everyday. Thanks for taking the time to share your knowledge manzaralar zayıflamak oyunlar yemek tarifleri

[Account Deleted]

wow thats is very good thinking, although I do not understand a bit, hehe

[Account Deleted]

asia is number one...hehe
refinishing hardwood floor

[Rastia Rigie]

Bank Mandiri Bank Terbaik di Indonesia
Bank Mandiri Bank Terbaik di Indonesia
Promo Bonus 100% Sbobet, Ibcbet dan Casino Online Dalam Rangka HUT BAVETLINE Yang Kedua
Masterbet88 Grand Opening Promo Bonus 50% Sportsbook dan Casino Online

[Kinsell Emma]

Good article.thank you for sharing.
Ultrabook Parts|AU AC Adapters|Global AC Adapter|Ersatz Laptop Akkus

[Okadapter]

laptop ac adapter
Compaq Laptop AC Adapters
HP Laptop AC Adapters
Dell Laptop AC Adapters