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The Impact of Intersectoral Labor Reallocationon Economic Growth
Series:
IMF Working Papers
Volume/Issue:
Volume 2000: Issue 104
Language:
English
Publication Date:
01 Jun 2000
DOI:
https://doi.org/10.5089/9781451852752.001
ISBN:
9781451852752
ISSN:
1018-5941
Pages:
27
Keywords:
WP; growth rate; Growth; labor reallocation; labor efficiency; education; reallocation effect; reallocation variable; reallocation decision; labor efficiency index; labor reallocation-driven growth; country effect; labor productivity gap; labor reallocation variable; Public expenditure review; Labor productivity; Capital accumulation; Sub-Saharan Africa; South Asia; East Asia; Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This study seeks to explain economic growth differences in an aggregate production function framework, where labor reallocation from agriculture to modern sectors influences labor efficiency growth. The econometric analysis uses a panel of 65 countries over 1960-90. The results highlight: (a) the differences in labor reallocation impact on growth, controlled for using the intersectoral wedge in labor productivities; (b) the significance of labor reallocation effects, even after controlling for capital accumulation, initial conditions, and country effects; (c) the role of slow labor reallocation in explaining the dummy variable for Sub-Saharan Africa; (d) the role of initial education levels in explaining differences in labor reallocation rates.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund