Factor Reallocation and Growth in Developing Countries
IMF Working Papers, June 1, 2000
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- Factor Reallocation and Growth in Developing Countries
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Bibliographic details
- Authors: Hélène Poirson
- Published: June 1, 2000
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451851717.001
Summary and research focus
- Examines the extent to which developing countries benefit from intersectoral factor transfers.
- Specifies the impact and determinants of sectoral changes and of the degree of dualism (or allocation inefficiency) in a dual economy model.
- Derives conditions under which factor reallocation is growth-enhancing.
Methodology
- Develops a dual economy model capturing sectoral factor transfers and allocation inefficiency (degree of dualism).
- Estimates an empirical error-correction equation for 30 developing countries during 1965-80.
Key findings and results
- Results suggest that labor reallocation effects are especially important in:
- countries with high rates of investment (and thus high rates of labor transfer), and/or
- countries at low levels of development (and thus high degrees of dualism).
- Emphasis on the role of labor reallocation as a channel for growth-enhancing factor transfers in developing-country contexts.
Subject areas and keywords (as listed)
- Subjects: Capital productivity, Expenditure, Human capital, Labor, Labor productivity, Production, Public expenditure review
- Keywords: Capital productivity, dualism, East Asia, factor productivity, Factor reallocation, GDP growth, growth, Human capital, labor coefficient, labor productivity, Labor productivity, labor reallocation, Public expenditure review, reallocation effect, South Asia, Sub-Saharan Africa, WP
Content in this bundle
- Factor Reallocation and Growth in Developing Countries - WP/00/94