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The impact of intersectoral labour reallocation on economic growth

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  • H Poirson

Abstract

This paper explains economic growth differences in an aggregate production function framework, where labor reallocation from agriculture to modern sectors influences labor efficiency growth. The econometric analysis uses a panel of 65 developing and industrial countries over 1960-90. The results highlight: (i) differences in the impact of labor reallocation on growth, resulting from variations in the intersectoral wedge in labor productivities; (ii) the significance of labor reallocation effects, even after controlling for capital accumulation, initial conditions and country effects, and adjusting for endogeneity; (iii) their role in explaining slow productivity growth in Africa; and (iv) the role of initial conditions and capital accumulation in explaining differences in labor reallocation rates.

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  • H Poirson, 2001. "The impact of intersectoral labour reallocation on economic growth," Journal of African Economies, Centre for the Study of African Economies, vol. 10(1), pages 37-63.
    • Handle: RePEc:oup:jafrec:v:10:y:2001:i:1:p:37-63.
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    File URL: http://hdl.handle.net/10.1093/jae/10.1.37
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    Cited by:

    1. Salvatore Capasso & Maria Rosario Carillo & Rita De Siano, 2012. "Migration Flows, Structural Change And Growth Convergence: A Panel Data Analysis Of The Italian Regions," Manchester School, University of Manchester, vol. 80(4), pages 468-498, July.
    2. Dalila Nicet-Chenaf & Eric Rougier, 2009. "Human capital and structural change: how do they interact with each other in growth?," Post-Print hal-00389040, HAL.
    3. Jonathan Temple & Ludger Wößmann, 2006. "Dualism and cross-country growth regressions," Journal of Economic Growth, Springer, vol. 11(3), pages 187-228, September.
    4. Maarten Bosker & Harry Garretsen, 2012. "Economic Geography and Economic Development in Sub-Saharan Africa," The World Bank Economic Review, World Bank, vol. 26(3), pages 443-485.
    5. John Knight & Sai Ding, 2008. "Why has China Grown so Fast? The Role of Structural Change," Economics Series Working Papers 415, University of Oxford, Department of Economics.
    6. Carmignani, Fabrizio & Mandeville, Thomas, 2014. "Never been industrialized: A tale of African structural change," Structural Change and Economic Dynamics, Elsevier, vol. 31(C), pages 124-137.
    7. Flaig, Dorothee & Grethe, Harald & McDonald, Scott, 2013. "Imperfect labour mobility in a CGE model: Does factor specific productivity matter?," Conference papers 332388, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. GOLLEY, Jane & WEI, Zheng, 2015. "Population dynamics and economic growth in China," China Economic Review, Elsevier, vol. 35(C), pages 15-32.

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