Aim and research questions
WP1 deals with the identification of the effects of structural change on aggregate productivity in CEE catching up countries compared to the emerging markets of South East Asia, Latin America as well OECD countries. Economic development will obviously entail structural change. However, the term ‘structural change’ can have different connotation in different types of literature, often encompassing primarily reallocation of labour and resources across sectors (e.g. McMillan, Rodrik 2011). We show in WP1 the importance of a wider analysis of structural change: the role of within sector structural change could be better understood by identifying the skill or occupational upgrading as a driver of productivity growth.
WP1 contains following research questions:
- What is the relative importance of the between sector reallocation of resources and within sector effect in the aggregate productivity growth in CEE countries compared to the rest of the world? What is driving the differences of countries in the importance of these two components of growth? What is the role of FDI?
- How to identify skill upgrading effect as a structural change component from the intrasectoral/within effect of productivity growth?
- How different structural change components of productivity growth are related to institutional factors at macro level?
- How occupational, sectoral or spatial labour mobility affect productivity on firm and aggregate level?
Senior Research Fellow, Chair of Econometric Modelling
School of Economics and Business Administration
University of Tartu
J. Liivi 4
Tel. +372 737 6395