Abstract

http://ssrn.com/abstract=608966
 
 

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Dualism and Cross-Country Growth Regressions


Ludger Woessmann


Ifo Institute for Economic Research; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); University of Munich - Ifo Institute for Economic Research

Jonathan R.W. Temple


University of Bristol - Department of Economics; Centre for Structural Econometrics; Centre for Economic Policy Research (CEPR)

September 2004

CESifo Working Paper Series No. 1290

Abstract:     
This paper examines whether growth regressions should incorporate dualism and structural change. If there is a differential across sectors in the marginal product of labour, changes in the structure of employment can raise aggregate total factor productivity. The paper develops empirical growth models that allow for this effect in a more flexible way than previous work. Estimates of the models imply sizeable marginal product differentials, and reveal that the reallocation of labour can explain a significant fraction of the international variation in TFP growth.

Number of Pages in PDF File: 60

Keywords: growth, convergence, structural change

JEL Classification: O1, O4

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Date posted: October 22, 2004  

Suggested Citation

Woessmann, Ludger and Temple, Jonathan R.W., Dualism and Cross-Country Growth Regressions (September 2004). CESifo Working Paper Series No. 1290. Available at SSRN: http://ssrn.com/abstract=608966

Contact Information

Ludger Woessmann (Contact Author)
Ifo Institute for Economic Research ( email )
Poschingerstr. 5
Munich
Germany
++49 89 9224 1699 (Phone)
++49 89 9224 1460 (Fax)
HOME PAGE: http://www.cesifo.de/link/woessmann_l.htm
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
Poschinger Str. 5
Munich, DE-81679
Germany
University of Munich - Ifo Institute for Economic Research
Schackstr. 4
Munich, 80539
Germany
Jonathan R.W. Temple
University of Bristol - Department of Economics ( email )
8 Woodland Road
Bristol BS8 ITN
United Kingdom
+44 117 928 8430 (Phone)
+44 117 928 8577 (Fax)
HOME PAGE: http://www.bris.ac.uk/Depts/Economics/Growth/
Centre for Structural Econometrics ( email )
United Kingdom
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
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Citations:  11

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