scholarly journals Structural Change and Income Inequality – Agricultural Development and Inter-sectoral Dualism in the Developing World, 1960-2010

OASIS ◽  
2016 ◽  
pp. 99 ◽  
Author(s):  
Martin P. Andersson ◽  
Andrés F. Palacio Chaverra
Keyword(s):  
Structural Change ◽  
Income Inequality ◽  
Service Sector ◽  
Agricultural Development ◽  
Agricultural Sector ◽  
Developing World ◽  
Country Level ◽  
Sectoral Productivity ◽  
Advanced Economies ◽  
Sectoral Composition

Structural change consists of the long-term changes in the sectoral composition of output and employment. We introduce a structural change perspective to the study of income inequality in 27 countries of the developing world for the period 1960-2010. The service sector has become the main employer, but the agricultural sector is central to the income distribution because poverty is mostly rural, and the labor surplus is high. We decompose the sectoral composition of aggregate labor productivity at the country level, divide the countries into agrarian, dual (beginner, intermediate and advanced), and mature economies and use the inter-sectoral productivity gap to test the effect of structural change on income inequality. We confirm increases in agricultural productivity everywhere and find that the inter-sectoral gap is positively associated with income inequality. The effect is negligible in agrarian and advanced economies but powerful in dual beginner economies: an increase of 1% in the inter-sectoral gap increases income inequality by 0.5%. The effect peters out in dual intermediate economies and disappears completely in dual advanced economies. Finally, redistribution has been the key to compensating the losers in the income changes, particularly for those entering the non-agricultural economy.

scholarly journals Sectoral Volatility, Development, and Governance: A Case Study of Pakistan

2006 ◽  
Vol 45 (4II) ◽  
pp. 797-817
Author(s):  
Toseef Azid ◽  
Naeem Khaliq ◽  
Muhammad Jamil
Keyword(s):  
Growth Rate ◽  
Structural Change ◽  
Service Sector ◽  
Structural Changes ◽  
Agricultural Sector ◽  
Green Revolution ◽  
Rate Of Growth ◽  
Agriculture Industry ◽  
The Future

Development of overall economy of any country largely depends upon the characteristics of different prominent sectors such as agriculture, industry, services, etc. Sharp structural change in prominent sectors are experienced by the Pakistan’s economy during the last four decades, in which industrial and service sector have exhibited an extra ordinary rate of growth, while the agricultural sector did not shown that rate of growth which was experienced during the time of green revolution. Due to these structural changes in the prominent sectors volatility of growth rate has been experienced by the economy. To the extent that most of the recent volatility in growth rate of GDP can be attributed to the increasing share of the some volatility of the some prominent sectors, the analysis of their volatility can be useful in providing some enlightenment on the factors behind this phenomenon and its implications for the formulation of the policy in the future.

scholarly journals Overview

2020 ◽  
pp. 1-24
Author(s):  
John Page ◽  
Finn Tarp
Keyword(s):  
Structural Change ◽  
Income Inequality ◽  
Natural Resources ◽  
African Countries ◽  
Relative Prices ◽  
Country Level ◽  
Long Run ◽  
Resource Sector ◽  
Competitive Activities ◽  
Oil Gas

For a growing number of African economies the discovery of natural resources is a tremendous opportunity, but one accompanied by considerable risks. Many African countries dependent on oil, gas, and mining have weaker long-run growth, higher rates of poverty and greater income inequality than their less resource-dependent neighbours. One major risk comes from the structure of resource-rich economies themselves. Relative prices make it more difficult to diversify into internationally competitive activities outside the resource sector, thus narrowing the scope for structural change. This chapter focuses on how countries can use natural resources to diversify. Drawing on country-level evidence it explores three key themes: the institutions needed to manage a resource boom, the construction sector, and linking industry to the resource.

scholarly journals Structural change in the Bangladesh economy: An analysis of composition of output

2018 ◽  
Vol 6 (3) ◽  
pp. 141-158
Author(s):  
Tonmoyee H. Ayon
Keyword(s):  
Structural Change ◽  
Structural Changes ◽  
Agricultural Sector ◽  
Industrial Sector ◽  
The Other ◽  
Services Sector ◽  
Other Hand ◽  
Sectoral Composition ◽  
Increasing Trends ◽  
Over Time

This paper examines the changes in the sectoral composition of Bangladesh’s GDP over the period 1973 – 2017 both at the aggregated and disaggregated levels. As expected, perceptible changes occurred at the aggregated level with the share of the agricultural sector declining steadily while the relative shares of industry and services showing increasing trends. All three broad sectors of the Bangladesh economy grew over time. It appears from the study that the industrial sector grew the fastest followed by the services sector. The share of agriculture fell from about 39 percent in 1973 to 16 percent in 2017. During the same period, the share of the industrial sector rose from just over 15 percent to more than 31 percent. On the other hand, the share of the services sector increased from 46 percent in 1973 to about 54 percent in 2016. An analysis of the intra-sectoral composition suggests that the production of some commodities grew faster than others, and then over time some new commodities gained prominence thereby causing remarkable structural changes.

scholarly journals Manufacturing Jobs and Inequality

2019 ◽  
Vol 2019 (191) ◽  
Author(s):  
Natalija Novta ◽  
Evgenia Pugacheva
Keyword(s):  
United States ◽  
Income Inequality ◽  
Service Sector ◽  
The United States ◽  
Wage Premium ◽  
Wage Distribution ◽  
Actual Increase ◽  
Advanced Economies ◽  
High Level ◽  
The U.S

We examine the extent to which declining manufacturing employment may have contributed to increasing inequality in advanced economies. This contribution is typically small, except in the United States. We explore two possible explanations: the high initial manufacturing wage premium and the high level of income inequality. The manufacturing wage premium declined between the 1980s and the 2000s in the United States, but it does not explain the contemporaneous rise in inequality. Instead, high income inequality played a large role. This is because manufacturing job loss typically implies a move to the service sector, for which the worker is not skilled at first and accepts a low-skill wage. On average, the associated wage cut increases with the overall level of income inequality in the country, conditional on moving down in the wage distribution. Based on a stylized scenario, we calculate that the movement of workers to low-skill service sector jobs can account for about a quarter of the increase in inequality between the 1980s and the 2000s in the United States. Had the U.S. income distribution been more equal, only about one tenth of the actual increase in inequality could have been attributed to the loss of manufacturing jobs, according to our simulations.

scholarly journals Sectoral Regional Growth and Convergence in Ecuador: An Analysis of the Intra-Distributive Dynamics of Productivity

Symmetry ◽  
2019 ◽  
Vol 11 (4) ◽  
pp. 461 ◽  
Author(s):  
Luis Quintana-Romero ◽  
Ronny Correa-Quezada ◽  
Marlon Ramón-Mendieta ◽  
José Álvarez-García
Keyword(s):  
Service Sector ◽  
Agricultural Sector ◽  
Parametric Method ◽  
Regional Growth ◽  
Second Phase ◽  
Sectoral Productivity ◽  
Secondary Sector ◽  
Service Sectors ◽  
Sector Returns

The objective of this research is to examine growth and convergence processes in the provinces of Ecuador, considering sectoral productivity as an analysis variable. To do so, evidence of the productivity of the agricultural, secondary and service sectors is presented, and by applying the non-parametric method of density functions of the kernel, the complete distribution of the data is analyzed. The results obtained indicate that territorial inequality in Ecuador has very different behavior depending on the sectors of the economy. It is noted that inequality in terms of productivity is very high in the agricultural sector, it is at an average level in the secondary sector, and is less intense in the service sector. In the long-term, the overall balance is that sectoral inequality decreased among Ecuadorian provinces. However, there are two processes differentiated in time; in the first phase, inequality decreases more rapidly and in the second phase, it even increases in some sectors, as in the case of secondary sector returns.

The Role of Services in Urban and Regional Development: Recent Debates and New Directions

1992 ◽  
Vol 24 (9) ◽  
pp. 1255-1270 ◽  
Author(s):  
J N Marshall ◽  
P A Wood
Keyword(s):  
Structural Change ◽  
Regional Development ◽  
Service Sector ◽  
Capitalist Development ◽  
Advanced Economies ◽  
Service Activities ◽  
Urban And Regional Development ◽  
Sophisticated Analysis ◽  
Individual Service

The growing prominence of service activities in the advanced economies poses a substantial challenge for studies of urban and regional development. This paper is a review of different approaches to the analysis of service growth. Studies directed specifically at the development of producer or information services have contributed a valuable sense of the way in which services are leading economic change. They are, however, constrained by the predominantly sectoral nature of their approach, which plays down the diverse character of services and the intimate links between services and other sectors. The conceptualisation of structural change is also too narrow, viewed almost solely through the lens of changes in the service sector. In contrast, a number of Marxist-inspired analyses provide a broader interpretation of the character of structural change, emphasising the role of services in changing phases of capitalist development. They also provide a more sophisticated analysis of the diverse character of services and the types of development they provide. However, they have generally so far been constrained by the limited and derivative role given to services in the dynamics of the economy. The authors argue for a ‘service-informed’ view of structural change which contains a broad analysis of the dynamics of the advanced economies and a sense of the significance of individual service activities in change.

Structural Change, Growth, and Volatility

2015 ◽  
Vol 7 (3) ◽  
pp. 259-294 ◽  
Author(s):  
Alessio Moro
Keyword(s):  
Structural Change ◽  
Service Sector ◽  
Large Fraction ◽  
Gdp Growth ◽  
Middle Income ◽  
The Us ◽  
Per Capita ◽  
Cross Country ◽  
Sectoral Composition ◽  
The Impact

I construct a two-sector general equilibrium model of structural change to study the impact of sectoral composition of gross domestic product (GDP) on cross-country differences in GDP growth and volatility. For an empirically relevant parametrization of sectoral production functions, an increase in the share of services in GDP reduces both aggregate total factor productivity (TFP) growth and volatility, thus reducing GDP growth and volatility. When the model is calibrated to the US manufacturing and service sector, the rise of the service sector occurring as income grows can account for a large fraction of the differences in per capita GDP growth and volatility between high-income economies and upper middle income economies. (JEL E23, E25, E32, L60, L80)

DISSEMINATION AND USE OF INFORMATION ON CLIMATE CHANGE AND VARIABILITY: A CASE STUDY OF FARMERS IN MALUGA AND CHIBELA VILLAGES IN SEMI-ARID CENTRAL TANZANIA

Mousaion ◽  
2016 ◽  
Vol 33 (3) ◽  
pp. 1-24
Author(s):  
Emmanuel Elia ◽  
Stephen Mutula ◽  
Christine Stilwell
Keyword(s):  
Climate Change ◽  
Data Collection ◽  
Diffusion Of Innovations ◽  
Agricultural Development ◽  
Agricultural Sector ◽  
Policy Framework ◽  
Accurate Information ◽  
Adaptation To Climate Change ◽  
Climate Change And Variability ◽  
Semi Arid

This study was part of broader PhD research which investigated how access to, and use of, information enhances adaptation to climate change and variability in the agricultural sector in semi-arid Central Tanzania. The research was carried out in two villages using Rogers’ Diffusion of Innovations theory and model to assess the dissemination of this information and its use by farmers in their adaptation of their farming practices to climate change and variability. This predominantly qualitative study employed a post-positivist paradigm. Some elements of a quantitative approach were also deployed in the data collection and analysis. The principal data collection methods were interviews and focus group discussions. The study population comprised farmers, agricultural extension officers and the Climate Change Adaptation in Africa project manager. Qualitative data were subjected to content analysis whereas quantitative data were analysed to generate mostly descriptive statistics using SPSS.  Key findings of the study show that farmers perceive a problem in the dissemination and use of climate information for agricultural development. They found access to agricultural inputs to be expensive, unreliable and untimely. To mitigate the adverse effects of climate change and variability on farming effectively, the study recommends the repackaging of current and accurate information on climate change and variability, farmer education and training, and collaboration between researchers, meteorology experts, and extension officers and farmers. Moreover, a clear policy framework for disseminating information related to climate change and variability is required.

Political Economy of Land Tax in Pakistan

1986 ◽  
Vol 25 (4) ◽  
pp. 839-853
Author(s):  
Sarfraz Khan Qureshi
Keyword(s):  
Urban Areas ◽  
Agricultural Development ◽  
Agricultural Sector ◽  
Agricultural Land ◽  
Poor Countries ◽  
Scarce Resources ◽  
Agricultural Produce ◽  
Finance Development ◽  
Equity And Efficiency ◽  
Formed Part

Taxation of the agricultural sector is a major instrument for mobilization of the surplus to finance development projects within the agricultural sector and/or the rest of the economy. For many years, the need for a heavier taxation of agricultural land has formed part of the conventional wisdom regarding the ways of extracting agricultural surplus and increasing the tempo of agricultural development in poor countries. Land taxes have both equity and efficiency properties that gladden the hearts of both economists and vocal politicians belonging to urban areas. Taxes on land promote efficiency in the allocation of scarce resources by creating incentives for farmers to increase their effort and reduce their consumption, thus expanding the amount of agricultural produce available to the non-agricultural sectors of the economy. A tax on land has an important redistributive function because its incidence falls squarely on the landlord and is shifted neither forward to consumers nor backwards to suppliers of agricultural inputs; nor does it introduce distortions in the allocation of productive resources.

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