This paper examines the role of changes in sectoral productivity gaps over time in accounting for growth realized by countries over the past few decades. To quantify the productivity impact of the sectoral gaps, a simple model of resource allocation is developed in which the gaps arise due to distortions in the form of asymmetrical taxes across sectors. The paper finds a limited role of changes in distortions over time in accounting for actual growth...
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2016/06/29
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Documento de trabalho sobre pesquisa de políticas
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WPS7737
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1
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1
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2016/06/29
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Disclosed
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Sectoral productivity gaps and aggregate productivity
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labor share
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