Publication Type
Journal Article
Version
acceptedVersion
Publication Date
7-2016
Abstract
Economies diversify and then re-specialize as they develop. These “stages of diversification” may result from productivity-driven structural change if initially resources are concentrated in industries other than those that dominate economic structure in the long run. A calibrated multi-industry growth model with many countries and with industry differences in productivity growth rates replicates the main features of the “stages of diversification”. We also present evidence that countries systematically shift resources towards manufacturing industries with rapid productivity growth, and towards sectors with low productivity growth, consistent with the model and supporting the “productivity mechanism” for structural transformation.
Keywords
Structural transformation, Stages of diversification, Productivity differences, Economic development
Discipline
Economics | Industrial Organization
Research Areas
Macroeconomics
Publication
Review of Economic Dynamics
Volume
21
First Page
266
Last Page
285
ISSN
1094-2025
Identifier
10.1016/j.red.2015.06.003
Publisher
Elsevier
Citation
SAMANIEGO, Roberto and SUN, Juliana Y..
Productivity Growth and Structural Transformation. (2016). Review of Economic Dynamics. 21, 266-285.
Available at: https://ink.library.smu.edu.sg/soe_research/1707
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.red.2015.06.003