Sectoral Regularities of Productivity Growth in Developing Countries. A Kaldorian Interpretation

U.E. Pieper

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Abstract

This paper provides a kaldorian interpretation for empirical regularities of productivity growth at the sectoral level of the economy. The statistical evidence is based on a dataset drawn from internationally compatible time series for employment and value added in 30 developing countries. Based on novel non-linear statistical techniques the findings show: (i) a regular pattern of positive sectoral employment elasticities with respect to output growth; (ii) robust differences across sectors in the magnitude of the employment elasticities; and (iii) employment elasticities for all sectors that are significantly less than unity, suggesting strong evidence for increasing returns at the sector level of the economy.
Original languageEnglish
Pages (from-to)831-850
JournalCambridge Journal of Economics
Volume27
DOIs
Publication statusPublished - 1 Jan 2003

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