The recent growth boom in developing economies: The role of services

This note draws heavily on the recent paper ‘The recent growth book in developing economies: a structural change perspective’ by Xinshen Diao, Margaret McMillan and Dani Rodrik (2017). Although the paper is not focused on the services sector per se, we may draw two broad conclusions about the role o...

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Main Authors: Diao, Xinshen, McMillan, Margaret S., Rodrik, Dani
Format: Book Chapter
Language:Inglés
Published: Overseas Development Institute 2017
Subjects:
Online Access:https://hdl.handle.net/10568/148476
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author Diao, Xinshen
McMillan, Margaret S.
Rodrik, Dani
author_browse Diao, Xinshen
McMillan, Margaret S.
Rodrik, Dani
author_facet Diao, Xinshen
McMillan, Margaret S.
Rodrik, Dani
author_sort Diao, Xinshen
collection Repository of Agricultural Research Outputs (CGSpace)
description This note draws heavily on the recent paper ‘The recent growth book in developing economies: a structural change perspective’ by Xinshen Diao, Margaret McMillan and Dani Rodrik (2017). Although the paper is not focused on the services sector per se, we may draw two broad conclusions about the role of the services sector in economic growth in developing economies from this paper. We focus on country-specific growth accelerations, which started as early as 1988 and as late as 2003 and last for at least seven years. First, the services sector has contributed to labour productivity growth in developing economies through structural change (primarily Africa) and through productivity improvements within the services sector (primarily Latin America) and sometimes through both channels (primarily East Asia). Second, in many African countries, within-sector productivity growth in the services sector (and in most other sectors, with the exception of agriculture) has been weak and sometimes negative. We argue that one reason for the differences across regions relates to the characteristics of the growth boom and caution that, without within-sector productivity improvements in services and manufacturing, structural, change-led growth will peter out in Africa.
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spelling CGSpace1484762025-03-03T20:03:42Z The recent growth boom in developing economies: The role of services Diao, Xinshen McMillan, Margaret S. Rodrik, Dani structural adjustment economic growth supply balance economic development demand socioeconomic development labour productivity developing countries This note draws heavily on the recent paper ‘The recent growth book in developing economies: a structural change perspective’ by Xinshen Diao, Margaret McMillan and Dani Rodrik (2017). Although the paper is not focused on the services sector per se, we may draw two broad conclusions about the role of the services sector in economic growth in developing economies from this paper. We focus on country-specific growth accelerations, which started as early as 1988 and as late as 2003 and last for at least seven years. First, the services sector has contributed to labour productivity growth in developing economies through structural change (primarily Africa) and through productivity improvements within the services sector (primarily Latin America) and sometimes through both channels (primarily East Asia). Second, in many African countries, within-sector productivity growth in the services sector (and in most other sectors, with the exception of agriculture) has been weak and sometimes negative. We argue that one reason for the differences across regions relates to the characteristics of the growth boom and caution that, without within-sector productivity improvements in services and manufacturing, structural, change-led growth will peter out in Africa. 2017 2024-06-21T09:24:47Z 2024-06-21T09:24:47Z Book Chapter https://hdl.handle.net/10568/148476 en https://doi.org/10.3386/w23132 Open Access Overseas Development Institute Diao, Xinshen; McMillan, Margaret S.; and Rodrik, Dani. 2017. The recent growth boom in developing economies: The role of services. In Bernard Hoekman and Dirk Willem te Velde, eds. Supporting Economic Transformation: Trade in services and economic transformation: A new development policy priority, pp. 6-7. London, U.K.: Overseas Development Institute (ODI). http://set.odi.org/wp-content/uploads/2017/02/SET-essays.pdf
spellingShingle structural adjustment
economic growth
supply balance
economic development
demand
socioeconomic development
labour productivity
developing countries
Diao, Xinshen
McMillan, Margaret S.
Rodrik, Dani
The recent growth boom in developing economies: The role of services
title The recent growth boom in developing economies: The role of services
title_full The recent growth boom in developing economies: The role of services
title_fullStr The recent growth boom in developing economies: The role of services
title_full_unstemmed The recent growth boom in developing economies: The role of services
title_short The recent growth boom in developing economies: The role of services
title_sort recent growth boom in developing economies the role of services
topic structural adjustment
economic growth
supply balance
economic development
demand
socioeconomic development
labour productivity
developing countries
url https://hdl.handle.net/10568/148476
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