Evolving Comparative Advantage, Sectoral Linkages, and Structural Change

50 Pages Posted: 17 Aug 2015

See all articles by Michael Sposi

Michael Sposi

Southern Methodist University (SMU)

Date Written: 2015-03-01

Abstract

I quantitatively examine the effects of location-and sector-specific productivity growth on structural change across countries from 1970-2011. The results shed new light on the “hump shape" in industry's share in GDP across levels of development. There are two key features. First, otherwise identical changes in the composition of final demand translate differently into changes in the composition of value added because of systematic differences in sectoral linkages. Second, the mapping between sector-specific productivity and the composition of final demand systematically differs because of the relative importance of two components within final demand: final domestic expenditures and net exports.

JEL Classification: F10, F40, O14

Suggested Citation

Sposi, Michael, Evolving Comparative Advantage, Sectoral Linkages, and Structural Change (2015-03-01). Globalization and Monetary Policy Institute Working Paper No. 231, Available at SSRN: https://ssrn.com/abstract=2643957 or http://dx.doi.org/10.24149/gwp231

Michael Sposi (Contact Author)

Southern Methodist University (SMU) ( email )

6212 Bishop Blvd.
Dallas, TX 75275
United States

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