Structural Change and Economic Growth across Major States of India

2018 ◽  
Vol 9 (2) ◽  
pp. 162-182
Author(s):  
Monica Thind ◽  
Lakhwinder Singh
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Productivity Growth ◽  
Development Process ◽  
Structural Changes ◽  
Labour Productivity ◽  
High Productivity ◽  
Labour Productivity Growth ◽  
Potential Source ◽  
The Relationship

The structural change in an economy is an important feature of the economic development process. Structural change becomes a potential source of growth in an economy as it induces reallocation of labour from low-productivity to high-productivity sectors, thus leading to fuller and better utilization of overall resources. This article studies the relationship between structural change and growth in 15 major states of India over the 30-year period from 1983–1984 to 2014–2015. The study aims at discovering whether structural changes have contributed to economic growth of these states or otherwise. This is achieved by decomposing the overall labour productivity growth of states into contribution by structural change and within sector change. The results show that in all the states under study structural changes have contributed positively to growth; however, contribution of within sector changes is found to be much more than structural change in all states except Maharashtra.

Productivity Growth, Structural Change and Informality: The Case of Russia

2015 ◽  
pp. 30-61 ◽  
Author(s):  
I. Voskoboynikov ◽  
V. Gimpelson
Keyword(s):  
Structural Change ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Alternative Methods ◽  
Industry Effects ◽  
Labour Productivity Growth ◽  
Russian Economy ◽  
Negative Effect ◽  
Total Labour

This study considers the influence of structural change on aggregate labour productivity growth of the Russian economy. The term "structural change" refers to labour reallocation both between industries and between formal and informal segments within an industry. Using Russia KLEMS and official Rosstat data we decompose aggregate labour productivity growth into intra-industry (within) and between industry effects with four alternative methods of the shift-share analysis. All methods provide consistent results and demonstrate that total labour reallocation has been growth enhancing though the informality expansion has had a negative effect. As our study suggests, it is caused by growing variation in productivity levels across industries.

scholarly journals Services Sector in Lithuania: Labour Productivity as a Factor of Growth

Ekonomika ◽  
2008 ◽  
Vol 81 ◽  
Author(s):  
Jolanta Žemgulienė
Keyword(s):  
Growth Rate ◽  
Comparative Analysis ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Value Added ◽  
Service Industries ◽  
Services Sector ◽  
Labour Productivity Growth ◽  
Empirical Regularities ◽  
The Relationship

This paper examines the tendencies of Lithuanian services sector’s value added and labour productivity during 1995-2006. Comparative analysis of the average annual labour productivity growth in manufacturing and service industries reveals arguments supporting the W. Baumol’s consideration that there can be sporadic productivity increases in nonprogressive sectors. During 1995-2000, labour productivity growth in services exceeded productivity growth in manufacturing. The paper offers an interpretation of the Verdoom law for empirical regularities of the relationship between the cross-sectorial labour productivity growth rate and the value added growth rate.

Trade Liberalization, Structural Change, and Economic Growth

2021 ◽  
pp. 407-441
Author(s):  
Michael Landesmann ◽  
Neil Foster-McGregor
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Trade Liberalization ◽  
Productivity Growth ◽  
Global Economy ◽  
Adam Smith ◽  
Trade Theory ◽  
New Trade Theory ◽  
The Impact ◽  
The Relationship

Trade and the integration of countries into the global economy is one of the main forces shaping the structural composition of economies, an effect which in turn is expected to impact upon productivity and growth. Structural change can be restrained or reinforced by international trade. This chapter reviews the theory on the relationship between trade and trade liberalization and both structural change and growth, from the contributions of Adam Smith to the more recent new new trade theory beginning with the work of Melitz. The chapter further discusses the existing empirical evidence on the relationship between trade and structural change, before concluding by presenting evidence on the impact of trade liberalization on productivity growth for a broad sample of countries, further decomposing the effect into an effect due to structural change and an effect due to within sector productivity developments.

Analysis of the Labour Productivity Impact on Indicators of Economic Growth at the National, Sub-Federal, and Regional Levels

2021 ◽  
pp. 198-215
Author(s):  
Svetlana A. Samusenko ◽  
Keyword(s):  
Economic Growth ◽  
Productivity Growth ◽  
Labour Productivity ◽  
Federal District ◽  
Krasnoyarsk Krai ◽  
Real Wages ◽  
Labour Productivity Growth ◽  
Per Capita ◽  
Constant Prices

Labour productivity has a predominant impact on economic growth and the rate of postcrisis economic recovery. The increase in labour productivity, in turn, depends on the employed population’s standard of living. A comparative longitude analysis of these indicators’ dynamics reveals the potential for the economic growth of the territory. The historically determined asymmetry in the economic development of Russian regions requires analysis carried out at the national, sub-federal (federal districts), and regional levels. In the study, the author evaluates the dynamics of the per capita gross regional product (GRP), labour productivity, and real wages in constant prices at purchasing power parity for Russia, the Siberian Federal District, and Krasnoyarsk Krai. The results of this analysis allow comparing economic growth and labour productivity growth in Russia and Russian regions with international trends. The author has found that labour productivity per working hour measured in constant prices in Russia, Siberia, and Krasnoyarsk Krai is several times lower than the corresponding indicators of countries leading in productivity and economic growth. The dynamics of per capita GRP and labour productivity, measured both in current and constant prices, is positive. The statistical relationship between labour productivity growth and cyclical processes in the national economy is noted; in the crisis and post-crisis periods, there is outstripping growth in labour productivity due to the mobilization of the workers’ labour potential. The economy of the Siberian Federal District has been characterized by a steady excess of the growth rate of labour productivity over the growth rate of per capita GRP, while in Krasnoyarsk Krai and Russia this trend has manifested since 2014 with the onset of the crisis. This process indicates a change in the mechanisms of economic growth: with the entry into the crisis phase, human labour, as well as its efficiency, becomes the only significant factor in maintaining the stability of national and regional economies. The obtained results also show the depressive impact of a long-term decline in real wages on labour productivity and economic growth during the economic crisis. The structural analysis demonstrates that labour productivity growth has a strong positive effect on economic growth, while the growth of the employment rate has a moderate positive effect. A decline in the share of the working-age population in the demographic structure has a pronounced negative impact on economic growth in the long-term period. The study results can be used in the development of national and regional policies related to stimulating economic growth.

scholarly journals Labour productivity growth slowdown: An effect of economic stagnation rather than its cause?

2017 ◽  
Vol 67 (s1) ◽  
pp. 67-77 ◽  
Author(s):  
Leon Podkaminer
Keyword(s):  
Economic Growth ◽  
Productivity Growth ◽  
Technological Progress ◽  
Labour Productivity ◽  
Output Growth ◽  
Global Level ◽  
Labour Productivity Growth ◽  
Economic Stagnation ◽  
Term Data

This paper reports the results of an econometric examination on the links between labour productivity and output growth for 22 countries (for which long-term data are available). It turns out that, generally, labour productivity does not “cause” output. In more cases, the causation seems to be running in the opposite direction: from output to productivity. This finding, though inconsistent with the “mainstream” ideas on the sources of long-term economic growth, is reminiscent of the classical Kaldor-Verdoorn Law. The progressing slowdown in output growth on the global level, initiated around the mid-1970s (when the process of discarding the earlier economic policy paradigms set in), may have been mirrored by the progressing slowdown in productivity growth (and that despite the hardly disputable acceleration of technological progress).

scholarly journals Employment and Productivity Growth in Tanzania’s Service Sector

2018 ◽  
pp. 296-315
Author(s):  
Mia Ellis ◽  
Margaret McMillan ◽  
Jed Silver
Keyword(s):  
Structural Change ◽  
Private Sector ◽  
Productivity Growth ◽  
Service Sector ◽  
Labour Productivity ◽  
Rapid Decline ◽  
Labour Productivity Growth ◽  
Agricultural Employment ◽  
Employment Share ◽  
Economic Future

During 2002–12, Tanzania’s economy grew more rapidly than at any other time in its history. More than three-quarters of its labour productivity growth is accounted for by structural change; the remainder is largely attributable to within-sector productivity growth in agriculture. The growth attributable to structural change is almost entirely explained by a rapid decline in the agricultural employment share and an increase in the non-agricultural private sector employment share—with 11.4% of employment growth in the private non-agricultural economy due to the expansion of the formal private sector; the remaining 88.6% occurred in the informal sector. This chapter assesses the role that services have played in Tanzania’s recent growth and the role that they could play in its economic future.

Structural Change and the Role of Demand

2021 ◽  
pp. 95-112
Author(s):  
Ricardo Azevedo Araujo ◽  
Joanílio Rodolpho Teixeira
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Productivity Growth ◽  
Technological Progress ◽  
Structural Changes ◽  
Supply And Demand ◽  
Supply Side ◽  
Demand Side ◽  
Sector Model

Structural economic dynamics is an approach that provides insights into the process of structural change, offering a synthesis between traditional supply and demand views of economic growth, with the supply side characterized by technological progress and the demand side driven by the Engel’s law. However, adequately considering structural change requires a framework for more fully accounting for the role of demand, and not leaving it as merely exogenous. With this inquiry dimensions of endogenous patterns of demand are selectively embedded in a Pasinetti multi-sector model, thus rendering structural changes endogenous. This stream of research provides a more inclusive and comprehensive panorama of the role of demand for structural change, connecting the evolving patterns of the demand with productivity growth.

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