Structural Change and Cross-Country Growth Empirics

doi:10.1093/wber/lhs020

Publication:
Structural Change and Cross-Country Growth Empirics

creativeworkseries.issn	1564-698X
dc.contributor.author	Eberhardt, Markus
dc.contributor.author	Teal, Francis
dc.date.accessioned	2014-12-30T17:44:25Z
dc.date.available	2014-12-30T17:44:25Z
dc.date.issued	2013-06
dc.description.abstract	One of the most striking features of economic growth is the process of structural change whereby the share of agriculture in GDP decreases as countries develop. The cross-country growth literature typically estimates an aggregate homogeneous production function or convergence regression model that abstracts from the process of structural change. In this paper, we investigate the extent to which assumptions about aggregation and homogeneity matter for inferences regarding the nature of technology differences across countries. Using a unique World Bank dataset, we estimate production functions for agriculture and manufacturing in a panel of 40 developing and developed countries for the period from 1963 to 1992. We empirically model dimensions of heterogeneity across countries, allowing for different choices of technology within both sectors. We argue that heterogeneity is important within sectors across countries implying that an analysis of aggregate data will not produce useful measures of the nature of the technology or productivity. We show that many of the puzzling elements in aggregate cross-country empirics can be explained by inappropriate aggregation across heterogeneous sectors.	en
dc.identifier.citation	World Bank Economic Review
dc.identifier.doi	10.1596/21006
dc.identifier.issn	1564-698X
dc.identifier.uri	https://hdl.handle.net/10986/21006
dc.language.iso	en_US
dc.publisher	Oxford University Press on behalf of the World Bank
dc.relation.ispartofseries	World Bank Economic Review
dc.rights	CC BY-NC-ND 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subject	aggregate functions
dc.subject	agriculture
dc.subject	business cycles
dc.subject	dual economy
dc.subject	econometric modeling
dc.subject	economic theory
dc.subject	factor demand
dc.subject	GDP
dc.subject	output
dc.subject	growth rate
dc.subject	human capital
dc.subject	inventory
dc.subject	national income
dc.subject	production function
dc.subject	productivity
dc.subject	structural change
dc.subject	total factor productivity
dc.subject	value added
dc.subject	wealth
dc.title	Structural Change and Cross-Country Growth Empirics	en
dc.type	Journal Article	en
dc.type	Article de journal	fr
dc.type	Artículo de revista	es
dspace.entity.type	Publication
okr.date.disclosure	2014-12-30
okr.date.doiregistration	2025-05-06T11:19:12.111786Z
okr.doctype	Publications & Research::Journal Article
okr.globalpractice	Macroeconomics and Fiscal Management
okr.globalpractice	Transport and ICT
okr.identifier.doi	10.1093/wber/lhs020
okr.journal.nbpages	229-271
okr.language.supported	en
okr.peerreview	Academic Peer Review
okr.topic	Information and Communication Technologies::ICT Policy and Strategies
okr.topic	Macroeconomics and Economic Growth::Economic Growth
okr.topic	Macroeconomics and Economic Growth::Economic Theory & Research
okr.topic	Private Sector Development::E-Business
okr.topic	Science and Technology Development::Statistical & Mathematical Sciences
okr.volume	27(2)
relation.isJournalIssueOfPublication	8535821b-24f3-4a3a-bec9-71a80199e941
relation.isJournalIssueOfPublication.latestForDiscovery	8535821b-24f3-4a3a-bec9-71a80199e941
relation.isJournalOfPublication	c41eae2f-cf94-449d-86b7-f062aebe893f
relation.isJournalVolumeOfPublication	2b992401-bedc-42a8-a16e-c3b0e6e8cb9e