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APPENDIX

Data

Real GDP in 1995 constant dollars, real value added in agriculture in 1995 constant dollars, total labor force, and the share of the labor force employed in agriculture are extracted from World Bank (1999).

The capital stock in 1987 constant dollars is from Nehru and Dhareshwar (1993).

The average number of years of schooling in the population aged 15 to 64 is from Nehru, Swanson, and Dubey (1995).

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1

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.

2

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.

3

Only those that were statistically significant at conventional levels are included.

4

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.

5

Before 1965, data are missing for an important number of countries.

6

The (negative) catch-up effect is relatively stronger though for slow-growth countries.

The Impact of Intersectoral Labor Reallocationon Economic Growth
Author: Ms. Helene Poirson Ward