Empirical Evidence on the Geometrical Properties of Structural Change Trajectories
28 Pages Posted: 21 Aug 2017
Date Written: August 16, 2017
Abstract
We study the long-run labor reallocation dynamics in the three-sector framework relating to agriculture, manufacturing, and services. In particular, we depict the labor reallocation data provided by Maddison (1995) and WorldBank on standard simplexes, study the geometrical properties of the implied vector field, and derive the geometrical properties of stylized labor reallocation trajectories. Moreover, we discuss how these properties can be explained by the standard structural change literature and used for structural change analysis and prediction.
Keywords: structural change, sectors, labor, reallocation, long run, dynamics, trajectory, simplex, geometry, vector
JEL Classification: O41
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