Journal of Economic Growth

, Volume 11, Issue 3, pp 187–228

Dualism and cross-country growth regressions

Original Article

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.

Keywords

Structural change Dualism Wage differentials TFP growth 

JEL Classifications

O11 O40 

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Copyright information

© Springer Science+Business Media, LLC 2006

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of BristolBristolUK
  2. 2.CEPRLondonUK
  3. 3.Ifo Institute for Economic ResearchMunichGermany
  4. 4.Ludwig-Maximilians-University MunichMunichGermany
  5. 5.CESifoMunichGermany

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