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Dualism and cross-country growth regressions

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Abstract

This paper develops empirical growth models suitable for dual economies, and studies the relationship between structural change and economic growth. Changes in the structure of employment will raise aggregate productivity when the marginal product of labor varies across sectors. The models in the paper incorporate this effect in a more flexible way than previous work. Estimates of the models imply sizeable marginal product differentials, and indicate that the reallocation of labor makes a significant contribution to the international variation in productivity growth.

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Authors and Affiliations

  1. Department of Economics, University of Bristol, 8 Woodland Road, Bristol, BS8 1TN, UK

    Jonathan Temple

  2. CEPR, 90–98 Goswell Road, London, EC1V 7RR, UK

    Jonathan Temple

  3. Ifo Institute for Economic Research, Poschingerstr. 5, 81679, Munich, Germany

    Ludger Wößmann

  4. Ludwig-Maximilians-University Munich, Munich, Germany

    Ludger Wößmann

  5. CESifo, Poschingerstr. 5, 81679, Munich, Germany

    Ludger Wößmann

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Temple, J., Wößmann, L. Dualism and cross-country growth regressions. J Econ Growth 11, 187–228 (2006). https://doi.org/10.1007/s10887-006-9003-x

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