Key sectors in economic development: A perspective from input-output linkages and cross-sector misallocation

Arbeitspapier

For a typical developing country, this paper shows that once inter-sectoral linkages are taken into account, closing the productivity gap in a number of services gives bigger gains in aggregate productivity than closing it in agriculture or in manufacturing. This is performed in the context of an input-output economy and general equilibrium. Also, the importance of sector-specific distortions that produce cross-sector misallocation is addressed. I compute the effect of the removal of these distortions on aggregate productivity using the input-output model and find that this could increase productivity up to 68%, depending on whether the rents from distortions stay in the economy or not.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Papers ; No. 2015-23

Classification and Topics

• Classification: Wirtschaft ; One, Two, and Multisector Growth Models ; Input-Output Models
• Subject: key sectors ; economic development ; input-output linkages ; cross-sector misallocation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Leal, Julio
• Event: Veröffentlichung
• (who): Banco de México
• (where): Ciudad de México
• (when): 2015

Further information

• Handle: http://hdl.handle.net/10419/129963
• Last update: 10.03.2050, 11:42 AM CET