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I thank Jean-Claude Berthelemy, Francois Bourguignon, Daniel Cohen, Antoine d’Autume, Thierry Magnac, and Jean-Marc Robin for useful comments on earlier drafts of this paper. All remaining errors are mine only.
Dowrick (1989), for example. The variable (Y2/Y)t−1 was also introduced to test the hypothesis of a production structure effect, i.e. a systematic difference in rates of productivity growth between sectors, but the coefficient obtained was not significantly different from zero in any of the regressions. There does not appear to be a systematic productivity growth difference in favor of sector 2.
Only those that were statistically significant at conventional levels are included.
An instrumental variables approach would be warranted to draw more definite conclusions on the impact of reallocation on growth, but the difficulty of finding relevant instruments for the reallocation variables precludes it here.
Before 1965, data are missing for an important number of countries.
The (negative) catch-up effect is relatively stronger though for slow-growth countries.