Structural Change and Cross-Country Growth Empirics
One of the most striking features of economic growth is the process of structural change whereby the share of agriculture in GDP decreases as countries develop. The cross-country growth literature typically estimates an aggregate homogeneous produc...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2013/01/17196537/structural-change-cross-country-growth-empirics http://hdl.handle.net/10986/12157 |
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okr-10986-121572021-04-23T14:03:06Z Structural Change and Cross-Country Growth Empirics Eberhardt, Markus Teal, Francis AGGREGATE FUNCTIONS AGGREGATE PRODUCTION FUNCTION AGRICULTURE APPROPRIATE TECHNOLOGY AVAILABILITY OF DATA BANDWIDTH BASE YEAR BENCHMARK BI BIASES BUSINESS CYCLES CAPACITY BUILDING CAPITAL STOCK CAPITAL-LABOR CAPITAL-LABOR RATIOS CD COINTEGRATION COMMON DENOMINATOR CONFIDENCE INTERVALS CONSTANT RETURNS CONSTANT RETURNS TO SCALE CULTURAL CHANGE DATA ANALYSIS DATA LIMITATIONS DATA SOURCES DECREASING RETURNS DEFLATION DEFLATORS DESCRIPTIVE STATISTICS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIFFUSION INDEXES DUAL ECONOMY ECONOMETRIC MODELING ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERFORMANCE ECONOMIC STATISTICS ECONOMIC SURVEYS ECONOMIC THEORY ELASTICITY EMPIRICAL METHODS EQUATIONS EXCHANGE RATE EXCHANGE RATES EXTERNALITIES FACTOR ACCUMULATION FACTOR ANALYSIS FACTOR DEMAND FINANCIAL CRISIS GDP GDP PER CAPITA GLOBALIZATION GROWTH ACCOUNTING GROWTH ANALYSIS GROWTH LITERATURE GROWTH MODEL GROWTH MODELS GROWTH RATE GROWTH RATES GROWTH REGRESSIONS HUMAN CAPITAL HYPOTHESES IMPLEMENTATIONS INCOME PER CAPITA INCREASING RETURNS INCREASING RETURNS TO SCALE INDEPENDENT VARIABLES INDUSTRIALIZATION INNOVATION INSTRUMENTAL VARIABLES INTERNATIONAL COMPARISONS INTERNATIONAL INVESTMENT INVENTORY LABOR FORCE LESS DEVELOPED COUNTRIES LINEAR REGRESSION LOGARITHMS LOW INTEREST RATE MACROECONOMIC FORECASTING MACROECONOMICS MANUFACTURING MATRIX NATIONAL INCOME NATURAL RESOURCES ONLINE DATABASE OPEN ACCESS OUTLIERS OUTPUT STRUCTURE POLITICAL ECONOMY PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH PURCHASING POWER PURCHASING POWER PARITY R&D RANDOM WALKS REAL GDP RESULT RESULTS RETURNS TO SCALE SIMULTANEOUS EQUATIONS STANDARD ERRORS STATA STRUCTURAL CHANGE TECHNICAL PROGRESS TECHNOLOGICAL PROGRESS TFP TIME PERIOD TIME PERIODS TIME SERIES TOTAL FACTOR PRODUCTIVITY TRANSMISSION UNDUE INFLUENCE USES VALIDITY VALUE ADDED VARIABILITY WEALTH WEB One of the most striking features of economic growth is the process of structural change whereby the share of agriculture in GDP decreases as countries develop. The cross-country growth literature typically estimates an aggregate homogeneous production function or convergence regression model that abstracts from this process of structural change. This paper investigates the extent to which assumptions about aggregation and homogeneity matter for inferences regarding the nature of technology differences across countries. Using a unique World Bank dataset, it estimates production functions for agriculture and manufacturing in a panel of 40 developing and developed countries for the period from 1963 to 1992. It empirically models dimensions of heterogeneity across countries, allowing for different choices of technology within both sectors. The paper argues that heterogeneity is important within sectors across countries implying that an analysis of aggregate data will not produce useful measures of the nature of the technology or productivity. It shows that many of the puzzling elements in aggregate cross-country empirics can be explained by inappropriate aggregation across heterogeneous sectors. 2013-01-25T21:52:20Z 2013-01-25T21:52:20Z 2013-01 http://documents.worldbank.org/curated/en/2013/01/17196537/structural-change-cross-country-growth-empirics http://hdl.handle.net/10986/12157 English Policy Research Working Paper; No. 6335 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGGREGATE FUNCTIONS AGGREGATE PRODUCTION FUNCTION AGRICULTURE APPROPRIATE TECHNOLOGY AVAILABILITY OF DATA BANDWIDTH BASE YEAR BENCHMARK BI BIASES BUSINESS CYCLES CAPACITY BUILDING CAPITAL STOCK CAPITAL-LABOR CAPITAL-LABOR RATIOS CD COINTEGRATION COMMON DENOMINATOR CONFIDENCE INTERVALS CONSTANT RETURNS CONSTANT RETURNS TO SCALE CULTURAL CHANGE DATA ANALYSIS DATA LIMITATIONS DATA SOURCES DECREASING RETURNS DEFLATION DEFLATORS DESCRIPTIVE STATISTICS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIFFUSION INDEXES DUAL ECONOMY ECONOMETRIC MODELING ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERFORMANCE ECONOMIC STATISTICS ECONOMIC SURVEYS ECONOMIC THEORY ELASTICITY EMPIRICAL METHODS EQUATIONS EXCHANGE RATE EXCHANGE RATES EXTERNALITIES FACTOR ACCUMULATION FACTOR ANALYSIS FACTOR DEMAND FINANCIAL CRISIS GDP GDP PER CAPITA GLOBALIZATION GROWTH ACCOUNTING GROWTH ANALYSIS GROWTH LITERATURE GROWTH MODEL GROWTH MODELS GROWTH RATE GROWTH RATES GROWTH REGRESSIONS HUMAN CAPITAL HYPOTHESES IMPLEMENTATIONS INCOME PER CAPITA INCREASING RETURNS INCREASING RETURNS TO SCALE INDEPENDENT VARIABLES INDUSTRIALIZATION INNOVATION INSTRUMENTAL VARIABLES INTERNATIONAL COMPARISONS INTERNATIONAL INVESTMENT INVENTORY LABOR FORCE LESS DEVELOPED COUNTRIES LINEAR REGRESSION LOGARITHMS LOW INTEREST RATE MACROECONOMIC FORECASTING MACROECONOMICS MANUFACTURING MATRIX NATIONAL INCOME NATURAL RESOURCES ONLINE DATABASE OPEN ACCESS OUTLIERS OUTPUT STRUCTURE POLITICAL ECONOMY PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH PURCHASING POWER PURCHASING POWER PARITY R&D RANDOM WALKS REAL GDP RESULT RESULTS RETURNS TO SCALE SIMULTANEOUS EQUATIONS STANDARD ERRORS STATA STRUCTURAL CHANGE TECHNICAL PROGRESS TECHNOLOGICAL PROGRESS TFP TIME PERIOD TIME PERIODS TIME SERIES TOTAL FACTOR PRODUCTIVITY TRANSMISSION UNDUE INFLUENCE USES VALIDITY VALUE ADDED VARIABILITY WEALTH WEB |
| spellingShingle |
AGGREGATE FUNCTIONS AGGREGATE PRODUCTION FUNCTION AGRICULTURE APPROPRIATE TECHNOLOGY AVAILABILITY OF DATA BANDWIDTH BASE YEAR BENCHMARK BI BIASES BUSINESS CYCLES CAPACITY BUILDING CAPITAL STOCK CAPITAL-LABOR CAPITAL-LABOR RATIOS CD COINTEGRATION COMMON DENOMINATOR CONFIDENCE INTERVALS CONSTANT RETURNS CONSTANT RETURNS TO SCALE CULTURAL CHANGE DATA ANALYSIS DATA LIMITATIONS DATA SOURCES DECREASING RETURNS DEFLATION DEFLATORS DESCRIPTIVE STATISTICS DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DIFFUSION INDEXES DUAL ECONOMY ECONOMETRIC MODELING ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC HISTORY ECONOMIC PERFORMANCE ECONOMIC STATISTICS ECONOMIC SURVEYS ECONOMIC THEORY ELASTICITY EMPIRICAL METHODS EQUATIONS EXCHANGE RATE EXCHANGE RATES EXTERNALITIES FACTOR ACCUMULATION FACTOR ANALYSIS FACTOR DEMAND FINANCIAL CRISIS GDP GDP PER CAPITA GLOBALIZATION GROWTH ACCOUNTING GROWTH ANALYSIS GROWTH LITERATURE GROWTH MODEL GROWTH MODELS GROWTH RATE GROWTH RATES GROWTH REGRESSIONS HUMAN CAPITAL HYPOTHESES IMPLEMENTATIONS INCOME PER CAPITA INCREASING RETURNS INCREASING RETURNS TO SCALE INDEPENDENT VARIABLES INDUSTRIALIZATION INNOVATION INSTRUMENTAL VARIABLES INTERNATIONAL COMPARISONS INTERNATIONAL INVESTMENT INVENTORY LABOR FORCE LESS DEVELOPED COUNTRIES LINEAR REGRESSION LOGARITHMS LOW INTEREST RATE MACROECONOMIC FORECASTING MACROECONOMICS MANUFACTURING MATRIX NATIONAL INCOME NATURAL RESOURCES ONLINE DATABASE OPEN ACCESS OUTLIERS OUTPUT STRUCTURE POLITICAL ECONOMY PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH PURCHASING POWER PURCHASING POWER PARITY R&D RANDOM WALKS REAL GDP RESULT RESULTS RETURNS TO SCALE SIMULTANEOUS EQUATIONS STANDARD ERRORS STATA STRUCTURAL CHANGE TECHNICAL PROGRESS TECHNOLOGICAL PROGRESS TFP TIME PERIOD TIME PERIODS TIME SERIES TOTAL FACTOR PRODUCTIVITY TRANSMISSION UNDUE INFLUENCE USES VALIDITY VALUE ADDED VARIABILITY WEALTH WEB Eberhardt, Markus Teal, Francis Structural Change and Cross-Country Growth Empirics |
| relation |
Policy Research Working Paper; No. 6335 |
| description |
One of the most striking features of
economic growth is the process of structural change whereby
the share of agriculture in GDP decreases as countries
develop. The cross-country growth literature typically
estimates an aggregate homogeneous production function or
convergence regression model that abstracts from this
process of structural change. This paper investigates the
extent to which assumptions about aggregation and
homogeneity matter for inferences regarding the nature of
technology differences across countries. Using a unique
World Bank dataset, it estimates production functions for
agriculture and manufacturing in a panel of 40 developing
and developed countries for the period from 1963 to 1992. It
empirically models dimensions of heterogeneity across
countries, allowing for different choices of technology
within both sectors. The paper argues that heterogeneity is
important within sectors across countries implying that an
analysis of aggregate data will not produce useful measures
of the nature of the technology or productivity. It shows
that many of the puzzling elements in aggregate
cross-country empirics can be explained by inappropriate
aggregation across heterogeneous sectors. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Eberhardt, Markus Teal, Francis |
| author_facet |
Eberhardt, Markus Teal, Francis |
| author_sort |
Eberhardt, Markus |
| title |
Structural Change and
Cross-Country Growth Empirics |
| title_short |
Structural Change and
Cross-Country Growth Empirics |
| title_full |
Structural Change and
Cross-Country Growth Empirics |
| title_fullStr |
Structural Change and
Cross-Country Growth Empirics |
| title_full_unstemmed |
Structural Change and
Cross-Country Growth Empirics |
| title_sort |
structural change and
cross-country growth empirics |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2013/01/17196537/structural-change-cross-country-growth-empirics http://hdl.handle.net/10986/12157 |
| _version_ |
1764422248940175360 |