Sectoral Productivity Gaps and Aggregate Productivity
This paper examines the role of changes in sectoral productivity gaps over time in accounting for growth realized by countries over the past few decades. To quantify the productivity impact of the sectoral gaps, a simple model of resource allocatio...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/06/26538638/sectoral-productivity-gaps-aggregate-productivity http://hdl.handle.net/10986/24654 |
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okr-10986-246542021-04-23T14:04:23Z Sectoral Productivity Gaps and Aggregate Productivity Sinha, Rishabh JOBS EMPLOYMENT EMPLOYMENT RATE COUNTRY VARIATION MOTIVATION ECONOMIC GROWTH ACCOUNTING PRODUCTION PRODUCTIVITY GAIN EMPLOYMENT SHARE STRUCTURAL CHANGE INCOME PERFECT COMPETITION LABOR ALLOCATION AGE GROUP GDP PER CAPITA LABOR FORCE RESOURCE ALLOCATION MENU OPTIMIZATION AGGREGATE PRODUCTIVITY EQUILIBRIUM VARIABLES MARGINAL PRODUCTIVITY CAPITAL STOCK EMPLOYMENT RATES PRICE INPUTS DRIVERS OPEN ACCESS TRENDS ECONOMIC ACTIVITY DEVELOPMENT LABOR MARKET MARKET IMPERFECTIONS TIME PERIODS DATA MARGINAL PRODUCTS DEVELOPMENT ECONOMICS WORKER ONLINE DATABASE LABOR PRODUCTIVITY PRODUCTIVITY BUSINESS SERVICES CRITERIA MARKETS ORGANIZATIONS LABOR TOTAL EMPLOYMENT AVERAGING FINANCE TAXES PRODUCTIVITY CHANGE MANUFACTURING UNEMPLOYMENT TECHNOLOGY FACTOR MARKETS PRODUCTIVITY GROWTH HUMAN CAPITAL VALUE ADDED WORKERS CAPITAL WAGES RESULTS DUAL ECONOMY VALUE ACTUAL GROWTH CREDIT MACROECONOMICS RAW DATA TFP AGE GROUPS LABOUR MARKET INCOME DISTRIBUTION AGRICULTURE MEASUREMENT WAGE RATE SHARES BENCHMARK ECONOMICS PRODUCTION FUNCTION INCREASE IN LABOR LABOR ORGANIZATION RESULT TRADE GDP GROWTH RATE BUSINESS ESTIMATED PRODUCTIVITY INTERNATIONAL STANDARD IMPUTATION DISCIPLINE LENDING UNDERESTIMATES PRODUCTIVITY GAINS AVERAGE PRODUCTIVITY DATABASE LABOUR AGGREGATE LEVEL LESS DEVELOPED COUNTRIES LABOR SHARE LABOR MIGRATION DEVELOPMENT POLICY GROWTH This paper examines the role of changes in sectoral productivity gaps over time in accounting for growth realized by countries over the past few decades. To quantify the productivity impact of the sectoral gaps, a simple model of resource allocation is developed in which the gaps arise due to distortions in the form of asymmetrical taxes across sectors. The paper finds a limited role of changes in distortions over time in accounting for actual growth. Implied growth from changes in distortions accounts for less than 2.5 percent of actual growth for the median country. To check if the lower contribution of changes in distortions is because of unrealized gains suggested by high levels of present distortions, productivity gains are estimated when distortions across countries are reduced to the US levels. Barring a couple of cases, the gains in aggregate productivity are modest across the sample of countries. 2016-07-11T15:41:16Z 2016-07-11T15:41:16Z 2016-06 Working Paper http://documents.worldbank.org/curated/en/2016/06/26538638/sectoral-productivity-gaps-aggregate-productivity http://hdl.handle.net/10986/24654 English en_US Policy Research Working Paper;No. 7737 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
JOBS EMPLOYMENT EMPLOYMENT RATE COUNTRY VARIATION MOTIVATION ECONOMIC GROWTH ACCOUNTING PRODUCTION PRODUCTIVITY GAIN EMPLOYMENT SHARE STRUCTURAL CHANGE INCOME PERFECT COMPETITION LABOR ALLOCATION AGE GROUP GDP PER CAPITA LABOR FORCE RESOURCE ALLOCATION MENU OPTIMIZATION AGGREGATE PRODUCTIVITY EQUILIBRIUM VARIABLES MARGINAL PRODUCTIVITY CAPITAL STOCK EMPLOYMENT RATES PRICE INPUTS DRIVERS OPEN ACCESS TRENDS ECONOMIC ACTIVITY DEVELOPMENT LABOR MARKET MARKET IMPERFECTIONS TIME PERIODS DATA MARGINAL PRODUCTS DEVELOPMENT ECONOMICS WORKER ONLINE DATABASE LABOR PRODUCTIVITY PRODUCTIVITY BUSINESS SERVICES CRITERIA MARKETS ORGANIZATIONS LABOR TOTAL EMPLOYMENT AVERAGING FINANCE TAXES PRODUCTIVITY CHANGE MANUFACTURING UNEMPLOYMENT TECHNOLOGY FACTOR MARKETS PRODUCTIVITY GROWTH HUMAN CAPITAL VALUE ADDED WORKERS CAPITAL WAGES RESULTS DUAL ECONOMY VALUE ACTUAL GROWTH CREDIT MACROECONOMICS RAW DATA TFP AGE GROUPS LABOUR MARKET INCOME DISTRIBUTION AGRICULTURE MEASUREMENT WAGE RATE SHARES BENCHMARK ECONOMICS PRODUCTION FUNCTION INCREASE IN LABOR LABOR ORGANIZATION RESULT TRADE GDP GROWTH RATE BUSINESS ESTIMATED PRODUCTIVITY INTERNATIONAL STANDARD IMPUTATION DISCIPLINE LENDING UNDERESTIMATES PRODUCTIVITY GAINS AVERAGE PRODUCTIVITY DATABASE LABOUR AGGREGATE LEVEL LESS DEVELOPED COUNTRIES LABOR SHARE LABOR MIGRATION DEVELOPMENT POLICY GROWTH |
| spellingShingle |
JOBS EMPLOYMENT EMPLOYMENT RATE COUNTRY VARIATION MOTIVATION ECONOMIC GROWTH ACCOUNTING PRODUCTION PRODUCTIVITY GAIN EMPLOYMENT SHARE STRUCTURAL CHANGE INCOME PERFECT COMPETITION LABOR ALLOCATION AGE GROUP GDP PER CAPITA LABOR FORCE RESOURCE ALLOCATION MENU OPTIMIZATION AGGREGATE PRODUCTIVITY EQUILIBRIUM VARIABLES MARGINAL PRODUCTIVITY CAPITAL STOCK EMPLOYMENT RATES PRICE INPUTS DRIVERS OPEN ACCESS TRENDS ECONOMIC ACTIVITY DEVELOPMENT LABOR MARKET MARKET IMPERFECTIONS TIME PERIODS DATA MARGINAL PRODUCTS DEVELOPMENT ECONOMICS WORKER ONLINE DATABASE LABOR PRODUCTIVITY PRODUCTIVITY BUSINESS SERVICES CRITERIA MARKETS ORGANIZATIONS LABOR TOTAL EMPLOYMENT AVERAGING FINANCE TAXES PRODUCTIVITY CHANGE MANUFACTURING UNEMPLOYMENT TECHNOLOGY FACTOR MARKETS PRODUCTIVITY GROWTH HUMAN CAPITAL VALUE ADDED WORKERS CAPITAL WAGES RESULTS DUAL ECONOMY VALUE ACTUAL GROWTH CREDIT MACROECONOMICS RAW DATA TFP AGE GROUPS LABOUR MARKET INCOME DISTRIBUTION AGRICULTURE MEASUREMENT WAGE RATE SHARES BENCHMARK ECONOMICS PRODUCTION FUNCTION INCREASE IN LABOR LABOR ORGANIZATION RESULT TRADE GDP GROWTH RATE BUSINESS ESTIMATED PRODUCTIVITY INTERNATIONAL STANDARD IMPUTATION DISCIPLINE LENDING UNDERESTIMATES PRODUCTIVITY GAINS AVERAGE PRODUCTIVITY DATABASE LABOUR AGGREGATE LEVEL LESS DEVELOPED COUNTRIES LABOR SHARE LABOR MIGRATION DEVELOPMENT POLICY GROWTH Sinha, Rishabh Sectoral Productivity Gaps and Aggregate Productivity |
| relation |
Policy Research Working Paper;No. 7737 |
| description |
This paper examines the role of changes
in sectoral productivity gaps over time in accounting for
growth realized by countries over the past few decades. To
quantify the productivity impact of the sectoral gaps, a
simple model of resource allocation is developed in which
the gaps arise due to distortions in the form of
asymmetrical taxes across sectors. The paper finds a limited
role of changes in distortions over time in accounting for
actual growth. Implied growth from changes in distortions
accounts for less than 2.5 percent of actual growth for the
median country. To check if the lower contribution of
changes in distortions is because of unrealized gains
suggested by high levels of present distortions,
productivity gains are estimated when distortions across
countries are reduced to the US levels. Barring a couple of
cases, the gains in aggregate productivity are modest across
the sample of countries. |
| format |
Working Paper |
| author |
Sinha, Rishabh |
| author_facet |
Sinha, Rishabh |
| author_sort |
Sinha, Rishabh |
| title |
Sectoral Productivity Gaps and Aggregate Productivity |
| title_short |
Sectoral Productivity Gaps and Aggregate Productivity |
| title_full |
Sectoral Productivity Gaps and Aggregate Productivity |
| title_fullStr |
Sectoral Productivity Gaps and Aggregate Productivity |
| title_full_unstemmed |
Sectoral Productivity Gaps and Aggregate Productivity |
| title_sort |
sectoral productivity gaps and aggregate productivity |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/06/26538638/sectoral-productivity-gaps-aggregate-productivity http://hdl.handle.net/10986/24654 |
| _version_ |
1764457295400402944 |