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Journal Article

Dualism and Cross-Country Growth Regressions

Jonathan Temple and Ludger Wößmann
Journal of Economic Growth
Vol. 11, No. 3 (Sep., 2006), pp. 187-228
Published by: Springer
Stable URL: http://www.jstor.org/stable/40216104
Page Count: 42
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Dualism and Cross-Country Growth Regressions
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Abstract

This paper develops empirical growth models suitable for dual economies, and studies the relationship between structural change and economic growth. Changes in the structure of employment will raise aggregate productivity when the marginal product of la bor varies across sectors. The models in the paper incorporate this effect in a more flexible way than previous work. Estimates of the models imply sizeable marginal product differentials, and indicate that the reallocation of labor makes a significant contribution to the international variation in productivity growth.

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