Convergence in Sectoral Labor Productivity and Structural Change - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Convergence in Sectoral Labor Productivity and Structural Change write by Bisrat Kinfemichael. This book was released on 2015. Convergence in Sectoral Labor Productivity and Structural Change available in PDF, EPUB and Kindle. The dissertation examines catching up in labor productivity across countries and across US states. It also studies the role of financial development and inflow of foreign direct investment (FDI) on labor productivity and structural change. Chapter one studies unconditional convergence in labor productivity in cross section of countries. Using disaggregated service sector data for 101 countries, we find unconditional convergence in labor productivity for the service sector. The aggregate service sector yields a large unconditional convergence coefficient of -0.028, while for individual sub-sectors we find a similar presence of unconditional convergence. Since the service sector, as part of the "modern" sector now also faces international competition, unconditional convergence in labor productivity in this sector is not totally unwarranted. Given Rodrik's recent findings of unconditional convergence in labor productivity in the manufacturing sector (2013) and the observed failure of unconditional convergence of per capita GDP, our findings of unconditional convergence in the service sector suggest that we need to look carefully at methodological issues such as "aggregation bias" and the huge divergence of other sectors such as the agricultural sector as a potential solution to this anomaly. In chapter two, we investigate secoral unconditional convergence in labor productivity in the US sates using two series of data sets for the period 1987-1997 and 1998-2013. We have found evidence for catching up in labor productivity in the US states for the majority sectors. There is no evidence for unconditional convergence for the mining sector in 1-digit classification for 1980-1997 and manufacturing and utilities sectors in 2-digit classification for the recent data (1998-2013). The aggregate per capita GDP convergence test shows evidence for convergence for the 1980-1997 data but no evidence for convergence in the recent data consistent with the existing literature. The same factors that were considered responsible for regional convergence in the US, such as migration and falling cost of education, could work in the opposite direction to cause divergence in per capita income in recent years. Chapter three considers the relationship between financial development, inflow of foreign direct investment, labor productivity and structural change variables for 41 countries in Groningen Growth and Development 10-sector database for the period 1971-2012 using panel-VAR methodology. The effect of financial development on total labor productivity and employment share in sectors depend on the income level and geographical locations. We find that financial development has a significantly positive effect on total labor productivity of high income European countries, the United States, and for middle income Latin American counties. We do not find evidence for the positive effect of financial development on labor productivity for low income and middle income countries except for Latin American countries. The result does not show a significant effect of financial development on sectoral employment and value added shares. Inflow of FDI has a statistically significant negative effect on employment share of agriculture in middle income countries, and positive effect on the employment share of the manufacturing sector in middle income Asian countries.
China’s Productivity Convergence and Growth Potential—A Stocktaking and Sectoral Approach
China’s Productivity Convergence and Growth Potential—A Stocktaking and Sectoral Approach - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook China’s Productivity Convergence and Growth Potential—A Stocktaking and Sectoral Approach write by Min Zhu. This book was released on 2019-11-27. China’s Productivity Convergence and Growth Potential—A Stocktaking and Sectoral Approach available in PDF, EPUB and Kindle. China’s growth potential has become a hotly debated topic as the economy has reached an income level susceptible to the “middle-income trap” and financial vulnerabilities are mounting after years of rapid credit expansion. However, the existing literature has largely focused on macro level aggregates, which are ill suited to understanding China’s significant structural transformation and its impact on economic growth. To fill the gap, this paper takes a deep dive into China’s convergence progress in 38 industrial sectors and 11 services sectors, examines past sectoral transitions, and predicts future shifts. We find that China’s productivity convergence remains at an early stage, with the industrial sector more advanced than services. Large variations exist among subsectors, with high-tech industrial sectors, in particular the ICT sector, lagging low-tech sectors. Going forward, ample room remains for further convergence, but the shrinking distance to the frontier, the structural shift from industry to services, and demographic changes will put sustained downward pressure on growth, which could slow to 5 percent by 2025 and 4 percent by 2030. Digitalization, SOE reform, and services sector opening up could be three major forces boosting future growth, while the risks of a financial crisis and a reversal in global integration in trade and technology could slow the pace of convergence.
Structural Reforms and Labor Reallocation: A Cross-Country Analysis
Structural Reforms and Labor Reallocation: A Cross-Country Analysis - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Structural Reforms and Labor Reallocation: A Cross-Country Analysis write by Khalid ElFayoumi. This book was released on 2018-03-19. Structural Reforms and Labor Reallocation: A Cross-Country Analysis available in PDF, EPUB and Kindle. Institutional and market frictions impose costs on the reallocation of labor from low to high productivity sectors, leading to suboptimal allocations and a loss in aggregate labor productivity. Using cross-country sector-level data, we use a dynamic panel error correction model to compute the speed of sectoral labor adjustment, as well as the contribution of structural reforms in governance, labor and product markets, trade and openness, and the financial sector to lowering the costs of labor reallocation. We find that, on average, sectoral employment shares converge towards equilibrium allocations, closing about 13.7 percent of labor productivity gaps each year; this speed of labor adjustment varies across sectors and income groups. On structural reforms, we find a significant association between more efficient labor reallocation and financial market liberalization, less bureaucracy, strong judicial and regulatory environment, trade liberalization, better education and more flexible labor and product markets.
The Palgrave Handbook of Development Economics
The Palgrave Handbook of Development Economics - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Palgrave Handbook of Development Economics write by Machiko Nissanke. This book was released on 2019-08-12. The Palgrave Handbook of Development Economics available in PDF, EPUB and Kindle. This Handbook responds to the needs and aspirations of current and future generations of development economists by providing critical reference material alongside or in relation to mainstream propositions. Despite the potential of globalisation in accelerating growth and development in low and middle-income countries through the spread of technology, knowledge and information, its current practice in many parts of the world has led to processes that are socially, economically and politically and ecologically unsustainable. It is critical for development economists to engage with the pivotal question of how to change the nature and course of globalisation to make it work for inclusive and sustainable development. Applying a critical and pluralistic approach, the chapters in this Handbook examine economics of development paths under globalisation, focusing on sustainable development in social, environmental, institutional and political economy dimensions. It aims at advancing the frontier of development economics in these key aspects and generating more refined policy perspectives. It is critically reflective in examining effects of globalisation on development paths to date, and in terms of methodological and analytical approaches, as well as forward-thinking in policy perspectives with a view to laying a foundation for sustainable development.
Global Productivity
Global Productivity - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Global Productivity write by Alistair Dieppe. This book was released on 2021-06-09. Global Productivity available in PDF, EPUB and Kindle. The COVID-19 pandemic struck the global economy after a decade that featured a broad-based slowdown in productivity growth. Global Productivity: Trends, Drivers, and Policies presents the first comprehensive analysis of the evolution and drivers of productivity growth, examines the effects of COVID-19 on productivity, and discusses a wide range of policies needed to rekindle productivity growth. The book also provides a far-reaching data set of multiple measures of productivity for up to 164 advanced economies and emerging market and developing economies, and it introduces a new sectoral database of productivity. The World Bank has created an extraordinary book on productivity, covering a large group of countries and using a wide variety of data sources. There is an emphasis on emerging and developing economies, whereas the prior literature has concentrated on developed economies. The book seeks to understand growth patterns and quantify the role of (among other things) the reallocation of factors, technological change, and the impact of natural disasters, including the COVID-19 pandemic. This book is must-reading for specialists in emerging economies but also provides deep insights for anyone interested in economic growth and productivity. Martin Neil Baily Senior Fellow, The Brookings Institution Former Chair, U.S. President’s Council of Economic Advisers This is an important book at a critical time. As the book notes, global productivity growth had already been slowing prior to the COVID-19 pandemic and collapses with the pandemic. If we want an effective recovery, we have to understand what was driving these long-run trends. The book presents a novel global approach to examining the levels, growth rates, and drivers of productivity growth. For anyone wanting to understand or influence productivity growth, this is an essential read. Nicholas Bloom William D. Eberle Professor of Economics, Stanford University The COVID-19 pandemic hit a global economy that was already struggling with an adverse pre-existing condition—slow productivity growth. This extraordinarily valuable and timely book brings considerable new evidence that shows the broad-based, long-standing nature of the slowdown. It is comprehensive, with an exceptional focus on emerging market and developing economies. Importantly, it shows how severe disasters (of which COVID-19 is just the latest) typically harm productivity. There are no silver bullets, but the book suggests sensible strategies to improve growth prospects. John Fernald Schroders Chaired Professor of European Competitiveness and Reform and Professor of Economics, INSEAD
