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Labor productivity and energy use in a three sector model: An application to Egypt

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  • Rudiger von Arnim
  • Codrina Rada

Abstract

This paper presents a model of a developing economy with three sectors---a modern sector producing manufactures and services, a traditional sector producing agricultural goods, and a third sector providing energy. Modern and energy sector are assumed to be demand--constrained; the agricultural sector is supply--constrained. Simulation exercises confirm insights of existing theory on structural heterogeneity: A price--clearing agricultural sector can impose an inflationary barrier on growth. Further, emphasis is placed on the sources of productivity growth. Specifically, higher energy intensity rather than increases in energy productivity enable labor productivity growth, with the attendant complications for 'green growth'.

Suggested Citation

  • Rudiger von Arnim & Codrina Rada, 2011. "Labor productivity and energy use in a three sector model: An application to Egypt," Working Paper Series, Department of Economics, University of Utah 2011_06, University of Utah, Department of Economics.
    • Handle: RePEc:uta:papers:2011_06
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    File URL: http://economics.utah.edu/research/publications/2011_06.pdf
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    References listed on IDEAS

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    1. El-Said, Moataz & Löfgren, Hans & Robinson, Sherman, 2001. "The impact of alternative development strategies on growth and distribution: Simulations with a dynamic model for Egypt," TMD discussion papers 78, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Rada, Codrina & von Arnim, Rudiger, 2014. "India's structural transformation and role in the world economy," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 1-23.
    2. Marqueti, Adalmir & Morrone, Henrique & Santetti, Márcio, 2018. "Technical progress in GDP production and CO2 emissions in Brazil: 1970−2012," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    3. Omer, Ozlem & Capaldo, Jeronim, 2023. "The risks of the wrong climate policy for developing countries: Scenarios for South Africa," Ecological Economics, Elsevier, vol. 211(C).
    4. O. B. Reznikova & M. V. Sinitsyn & I. Z. Gakhokidze, 2023. "Long-term Scenarios of Global Power Industry Development: Main Tendencies and Uncertainties," Outlines of global transformations: politics, economics, law, Center for Crisis Society Studies, vol. 15(2).
    5. Goher-Ur-Rehman Mir & Servaas Storm, 2016. "Carbon Emissions and Economic Growth: Production-based versus Consumption-based Evidence on Decoupling," Working Papers Series 41, Institute for New Economic Thinking.
    6. Román-Collado, Rocío & Colinet, María José, 2018. "Are labour productivity and residential living standards drivers of the energy consumption changes?," Energy Economics, Elsevier, vol. 74(C), pages 746-756.
    7. Khan, Haider, 2023. "Geoeconomics, Structural Change and Energy Use in Iran: A SAM-Based CGE Analysis with Some Geoeconomic and Geopolitical Considerations," MPRA Paper 117155, University Library of Munich, Germany.
    8. von Arnim, Rudi & Tröster, Bernhard & Staritz, Cornelia & Raza, Werner, 2015. "Commodity dependence and price volatility in least developed countries: A structuralist computable general equilibrium model with applications to Burkina Faso, Ethiopia and Mozambique," Working Papers 52, Austrian Foundation for Development Research (ÖFSE).
    9. Morrone, Henrique, 2015. "Do demand and profitability stimulate capital accumulation? An analysis for Brazil," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    10. von Arnim, Rudiger & Tröster, Bernhard & Staritz, Cornelia & Raza, Werner, 2018. "Commodity price shocks and the distribution of income in commodity-dependent least-developed countries," Journal of Policy Modeling, Elsevier, vol. 40(2), pages 434-451.

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    More about this item

    Keywords

    Structural heterogeneity; Multi-sector model; Energy use JEL Classification: O41; Q43; C63;
    All these keywords.

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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