Arbeitspapier
Which Sectors Make the Poor Countries so Unproductive?
Standard growth accounting exercises find large cross-country differences in aggregate TFP. Here we ask whether specific sectors are driving these differences, and, if this is the case, which these problem sectors are. We argue that to answer these questions we need to consider four sectors. In contrast, the literature typically considers only two sectors. Our four sectors produce services (nontradable consumption), consumption goods (tradable consumption), construction (nontradable investment), and machinery and equipment (tradable investment). Interacting the data from the 1996 benchmark study of the Penn World Tables with economic theory, we find that the TFP differences across countries are much larger in the two tradable sectors than in the two nontradable sectors. This is consistent with the Balassa-Samuelson hypothesis. We also find that within the tradable sectors the TFP differences are much larger in machinery and equipment than in consumption goods. We illustrate the usefulness of our findings by accounting for the conflicting results of the existing two-sector analyses and by developing criteria for a successful theory of aggregate TFP.
- Sprache
-
Englisch
- Erschienen in
-
Series: IEHAS Discussion Papers ; No. MT-DP - 2005/19
- Klassifikation
-
Wirtschaft
Industrialization; Manufacturing and Service Industries; Choice of Technology
One, Two, and Multisector Growth Models
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- Thema
-
development accounting
sector TFPs
relative prices
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Herrendorf, Berthold
Valentinyi, Akos
- Ereignis
-
Veröffentlichung
- (wer)
-
Hungarian Academy of Sciences, Institute of Economics
- (wo)
-
Budapest
- (wann)
-
2005
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Herrendorf, Berthold
- Valentinyi, Akos
- Hungarian Academy of Sciences, Institute of Economics
Entstanden
- 2005
Ähnliche Objekte (12)
Does leaving home make you poor? Evidence from 13 European countries
Poor Children in Rich Countries
Recycling: Poor oil-producing countries
Empowering the world's poor countries
Empowering the world's poor countries
Which sectors of a modern economy are most central?
How rich countries became rich and why poor countries remain poor: It's economic structure ... duh!
Enabling poor countries to share knowledge
Intra-household bargaining in poor countries
Enabling poor countries to share knowledge
Identifying key sectors and key policies of a pro-poor growth strategy
Enabling low-carbon development in poor countries
Does leaving home make you poor? Evidence from 13 European countries
Poor Children in Rich Countries
Recycling: Poor oil-producing countries
Empowering the world's poor countries
Empowering the world's poor countries
Which sectors of a modern economy are most central?
How rich countries became rich and why poor countries remain poor: It's economic structure ... duh!
Enabling poor countries to share knowledge
Intra-household bargaining in poor countries
Enabling poor countries to share knowledge
Identifying key sectors and key policies of a pro-poor growth strategy
Enabling low-carbon development in poor countries
Does leaving home make you poor? Evidence from 13 European countries
Poor Children in Rich Countries
Recycling: Poor oil-producing countries
Empowering the world's poor countries
Empowering the world's poor countries
Which sectors of a modern economy are most central?
How rich countries became rich and why poor countries remain poor: It's economic structure ... duh!
Enabling poor countries to share knowledge
Intra-household bargaining in poor countries
Enabling poor countries to share knowledge
Identifying key sectors and key policies of a pro-poor growth strategy