Structural Reforms and Productivity Growth in Developing Countries: Intra- or Inter-Reallocation Channel?

This paper investigates the effects of financial sector, product market, and trade reforms on labor productivity growth its two components—the intra-sectoral (within) inter-sectoral (between) components—in a sample developing countries over 1975–2005. The finds that most past trade, product, sector have increased rate productivity. In particular, are further away from technology leader tend to benefit more structural than closer frontier. Looking at subcomponents growth, work mostly through intra-allocative efficiency channel but not inter-allocative channel. component is main driver impacts with contribution between 76 96 percent.