A Framework to Study the Role of Structural Transformation in Productivity Growth and Regional Convergence
Publication | April 2018
Structural transformation has played a crucial role in productivity growth and regional convergence, especially in the second half of the 20th century.
We show that σ-convergence in regional productivity growth can be approximated by σ-convergence in sectoral productivity growth and σ-convergence in structural transformation-led productivity growth. Applying this framework to Japanese prefecture-level data from 1874 to 2008, we find support for substantial convergence effects of structural transformation in the post-WWII years.
WORKING PAPER NO: 833
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