Benchmarking Structural Transformation Across the World
45 Pages Posted: 29 Aug 2013
Date Written: July 2013
This paper documents stylized facts on the process of structural transformation around the world and empirically analyzes its determinants using data on real value added by sector of economic activity (agriculture, manufacturing and services) for a panel of 168 countries over the period 1970-2010. The analysis points to large differences in sector shares both across and within regions as well as for countries at similar levels of economic development. Using both linear and quantile regression methods, it finds that a large proportion of the cross-country variation in sector shares can be accounted for by country characteristics, such as real GDP per capita, demographic structure, and population size. It also finds that policy and insitutional variables, such as product market reforms, openness to trade, human and physical capital, and finance improve the baseline model’s ability to account for the variation in sectoral shares across countries.
Keywords: Productivity, Emerging markets, Low-income developing countries, Agricultural sector, Manufacturing sector, Services sector, Cross country analysis, Structural Transformation, Agriculture, Manufacturing, Services, Quantile Regression, Panel Data, globalization, gdp per capita, real gdp, economic globalization, economic growth, total factor productivity, tfp, trade liberalization, international trade, globalization period, globalization index, international financial, exchange rates, per capita income, modern economic growth, international financial statistics, per capita incomes, national income, rate of growth, per capita income levels, growth rates, foreign exchange, balanced economic grow
JEL Classification: O14, O24, O40
Suggested Citation: Suggested Citation