Contribution of Structural Change to Productivity Growth: Evidence from Tunisia

Marouani, Mohamed Ali; Mouelhi, Rim

doi:10.1093/jae/ejv016

Cited by 15 publications

(23 citation statements)

References 21 publications

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“…The other variable is foreign investment. Chen et al (2011) showed foreign investment has a significant positive effect on labour productivity growth but Marouani and Mouelhi (2016) showed that it is not significant. Likewise with the education level variable in the research of Marouani and Mouelhi (2016) that supported structural bonus, education does not significantly influence productivity growth.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Chen et al (2011) showed foreign investment has a significant positive effect on labour productivity growth but Marouani and Mouelhi (2016) showed that it is not significant. Likewise with the education level variable in the research of Marouani and Mouelhi (2016) that supported structural bonus, education does not significantly influence productivity growth. However, in the study of Fagerberg (2000) which showed a structural burden, this variable has a significant positive impact, where higher education attainment increases labour productivity.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Some studies show that structural change can spark increased productivity (structural bonus). Among them are Akkemik (2005) whose study is on Singapore with the shift-share analysis model, Bosworth and Collins (2008) who researched China and India using the decomposition of growth model, Chen et al (2011) who used sectoral translog stochastic frontier production functions, dynamic decomposition and panel regressions from 38 manufacturing industries in China, and Marouani and Mouelhi (2016), whose research is on Tunisia with decomposition methods and regression models using sectoral data.…”

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Labour Productivity Growth in the Industrial Sector of Indonesia: Structural Bonus or Structural Burden?

Badriah

Alisjahbana

Wibowo

et al. 2019

MJES

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The economic structural change on the output side is accompanied by the reallocation of labour from the agricultural sector to the industrial sector. Some studies show the different effects of labour reallocation on labour productivity growth. This study analyses labour productivity growth in the manufacturing sector in relation to economic structural changes in Indonesia. The analytical methods used are shiftshare and panel data regression models using secondary data of 30 provinces from 2003-2014. The results show economic structural change through labour reallocation decreases growth of labour productivity (structural burden) although productivity continues to grow.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Labour Productivity Growth in the Industrial Sector of Indonesia: Structural Bonus or Structural Burden?

Badriah

Alisjahbana

Wibowo

et al. 2019

MJES

View full text Add to dashboard Cite

show abstract

“…This small gap was attributed to low productivity in the manufacturing sector, which is mostly dependent on simple assembly activities (World Bank 2014). Marouani and Mouelhi (2016) show that productivity in Tunisia increased at a relatively sustained pace in the past three decades. Also, productivity growth was mainly within sectors, suggesting no structural change (Marouani and Mouelhi 2016).…”

Section: Structural Change In Agriculturementioning

confidence: 96%

“…Marouani and Mouelhi (2016) show that productivity in Tunisia increased at a relatively sustained pace in the past three decades. Also, productivity growth was mainly within sectors, suggesting no structural change (Marouani and Mouelhi 2016). Moreover, high-productivity sectors, such as communications, did not witness an increase in labor share.…”

Section: Structural Change In Agriculturementioning

confidence: 96%

The role of agriculture and agro-processing for development in Tunisia

Institute¹

2018

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Growing without changing: A tale of Egypt's weak productivity growth

Morsy¹,

Levy

2020

African Development Review

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Despite fast growth during 2000-2010, Egypt saw limited productivity gains from sectoral labor reallocation over the past three decades. Using a novel data set and updated measures of productivity growth induced by structural change in employment patterns across a large set of countries, we explain why Egypt failed to significantly reduce unemployment, lower poverty, or raise productivity. We use crosscountry comparisons, counterfactual scenarios, and regression analysis to demonstrate that limited openness to trade, weak export diversification, and low access to finance prevented Egypt from tapping the growth potential of a structural shift in labor towards skilled manufacturing and private services, locking Egypt instead into a "low value trap." The paper suggests policy implications on how to overcome impediments to efficient sectoral reallocation of workers. 1 | INTRODUCTION Egypt's 2011 revolution highlighted unmet public demands for social justice, poverty alleviation, and improved job quality among Arab countries in transition. Despite improved growth, demands for higher living standards for the middle class-who drove the revolution-erupted just as Egypt's economy appeared to be taking off. Why? A closer look at Egypt's pre-revolution growth reveals that output per worker increased much more slowly than real gross domestic product (GDP). Most of its growth was driven by an increase in the labor force, while labor productivity's contribution was relatively limited and unemployment remained above 8%. The share of wages in GDP declined persistently (Figure 1) and output growth accrued mostly to domestic and foreign capital holders, not the middle class (Fadel, 2011). A lack of good jobs in high-productivity industries explains both the high unemployment, even among educated workers, and the low labor share in GDP, as those workers were concentrated in low-productivity industries, depressing wages. This accords with another striking element of Egypt's pre-revolution economic growth. Growth in emerging markets often sees excess labor reallocated from traditional industries to more productive sectors, but Egypt's GDP composition remained broadly unchanged. This paper proposes an explanation for Egypt's "lost decade of productivity," using a sectoral approach to show growth was mostly the product of an expanding labor force and within-sector productivity rather than a labor reallocation. Understanding Egypt's constraints on structural change is especially important now, with stagnating income per capita and close to 12% unemployment. Egypt's ability to deliver jobs in high-productivity industries is a matter of economic efficiency, social justice, and socio-political stability.

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Contribution of Structural Change to Productivity Growth: Evidence from Tunisia

Cited by 15 publications

References 21 publications

Labour Productivity Growth in the Industrial Sector of Indonesia: Structural Bonus or Structural Burden?

Labour Productivity Growth in the Industrial Sector of Indonesia: Structural Bonus or Structural Burden?

The role of agriculture and agro-processing for development in Tunisia

Growing without changing: A tale of Egypt's weak productivity growth

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