Ms. Era Dabla-Norris, Mr. Alun H. Thomas, Mr. Rodrigo Garcia-Verdu, Ms. Yingyuan Chen, and Ms. Kalpana Kochhar
. Interestingly, financial sector reforms are negatively and significantly associated with manufacturing and agricultural sector shares. Moreover, low average tariff rates appear to be relevant across the agriculturesharesdistribution, but are negatively and significantly associated with the manufacturing share. The capital account openness indicator is strongly positive for the agriculture and manufacturing shares, and is significant at various points of their respective distributions, mirroring the results for FDI from the baseline specification reported in Table 4
Ms. Era Dabla-Norris, Mr. Alun H. Thomas, Mr. Rodrigo Garcia-Verdu, and Ms. Yingyuan Chen
This paper documents stylized facts on the process of structural transformation around the world and empirically analyzes its determinants using data on real value added by sector of economic activity (agriculture, manufacturing and services) for a panel of 168 countries over the period 1970-2010. The analysis points to large differences in sector shares both across and within regions as well as for countries at similar levels of economic development. Using both linear and quantile regression methods, it finds that a large proportion of the cross-country variation in sector shares can be accounted for by country characteristics, such as real GDP per capita, demographic structure, and population size. It also finds that policy and insitutional variables, such as product market reforms, openness to trade, human and physical capital, and finance improve the baseline model’s ability to account for the variation in sectoral shares across countries.