Globalization, Structural Change, and Productivity Growth, with an Update on Africa

Globalization, Structural Change, and Productivity Growth, with an Update on Africa. Dani Rodrik, 2014, Paper. "Large gaps in labor productivity between the traditional and modern parts of the economy are a fundamental reality of developing societies. In this paper, we document these gaps, and emphasize that labor flows from low-productivity activities to high-productivity activities are a key driver of development. Our results show that since 1990 structural change has been growth reducing – with labor moving from low – to high- productivity sectors – in both Africa and Latin America.." Link