Productivity, structural change in employment and economic growth

Authors

  • Enrique R. Casares Universidad Autónoma Metropolitana

DOI:

https://doi.org/10.24201/ee.v22i2.141

Keywords:

manufacturing sector, learning by doing, productivity, structural change, growth

Abstract

We develop an endogenous growth model with two sectors, manufacturing and non-manufacturing. The manufacturing sector is the source of the balanced productivity growth. We study how the economy responds to shifts in sector-specific productivity. This, when the sector-specific productivity in the manufacturing sector increases, we find that the fraction of labor employed in the manufacturing sector follows an inverted V curve, and that the growth rate increases. This, the model captures approximately the documented pattern of development for the share of a manufacturing employment, a bell shape over time. When the sector-specific productivity in the non-manufacturing sector increases, the growth rate remains unchanged because the non-manufacturing sector is the non-learning sector.

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Published

2007-07-01

How to Cite

Casares, E. R. (2007). Productivity, structural change in employment and economic growth. Estudios Económicos De El Colegio De México, 22(2), 335–355. https://doi.org/10.24201/ee.v22i2.141