Dualism and Cross-Country Growth Regressions

60 Pages Posted: 22 Oct 2004

See all articles by Ludger Woessmann

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

Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: September 2004

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.

Keywords: growth, convergence, structural change

JEL Classification: O1, O4

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: https://ssrn.com/abstract=608966

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Institute for the Study of Labor (IZA)

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CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

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Jonathan R.W. Temple

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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