Structural Change in a Multi-Sector Model of Growth

The smile curve: Evolving sources of value added in manufacturing

“…This is helpful in that it rules out many of the standard “structural change” explanations in the growth literature. Studies such as Ngai and Pissarides (2007), Acemoglu and Guerrieri (2008) and Foellmi and Zweimuller (2008) stress the secular rise in services share of GDP and employment. What we see with the contrast between 1985–1995 and 1995–2005 is that this cannot be the whole story.…”

Size and composition of public investment, sectoral composition and growth

“…A second stream of literature related with our work analyzes the determinants and the growth-effects of structural change. 6 The recent contributions in this literature investigate the main drivers of structural change underlining either the role of the supply side of the economy, with heterogeneous technology and low substitutability in demand (Acemoglu and Guerrieri, 2008;Herrendorf and Valentinyi, 2015;Moro, 2012;Ngai and Pissarides, 2007) or the role of the demand side, in particular the presence of an Engelian effect in demand (Bonatti and Felice, 2008;Echevarria, 1997;Kongsamut et al, 2001). Other contributions assess the relative weight of the two drivers (Boppart, 2014;Comin et al, 2015;Herrendorf et al, 2013).…”

“…Other contributions assess the relative weight of the two drivers (Boppart, 2014;Comin et al, 2015;Herrendorf et al, 2013). Among these recent works, in particular, are those investigating whether the transition towards technologically stagnant sectors in developed economies may hinder growth in the long run (Acemoglu and Guerrieri, 2008;Bonatti and Felice, 2008;Echevarria, 1997;Kongsamut et al, 2001;Moro, 2015;Ngai and Pissarides, 2007). The contributions belonging to this literature do not generally take into account the potential role of government intervention (through public expenditure) in affecting the sectoral composition of the economy.…”

“…This preference structure is used byNgai and Pissarides (2007) to show that a elasticity of substitution lower than one generates an increase in the employment share in the service sector in a model where sectors differ in the exogenous rate of productivity growth and the service sector is assumed to display a lower rate of productivity growth.…”

The political economy of endogenous dual-sector model: public goods, labor markets and tax rates

“…It should be noted that there is different thinking about the transformation path of the dual-sector model. Friedmann (1966), Hansen and Prescott (2002) and Ngai and Pissarides (2004) emphasize the development of the urban sector as a priority, followed by the development of rural areas, i.e. urban-centered, urban first, followed by rural, for the transformation of the dual-sector model.…”