Gelişmekte olan ülkelerde yapısal değişim, toplam faktör verimliliği ve ekonomik büyüme

Structural change usually happens with economic development and its trend is different for different groups of countries mainly due to their level of economic development. While developed countries successfully transform their economies to highly productive manufacturing and then to service sector dominant economies both in terms of employment and sectoral contribution to GDP, developing countries are recognized to have a diverse and infrequent type of structural change trend. Therefore, it is vital to identify the main derivers of structural change for different groups of countries and define its effect on different economic aggregates. As a result, GDP per capita, the share of agricultural employment, and dependency on raw material export produce a positive structural change in developing countries while they have an opposite effect on the structural change of developed countries. On the contrary, sectoral wedges, within sector technological advancement and institutional quality affect structural change term in developing countries negatively. On the other hand, structural change has far-reaching effects on economic aggregates. This study also found out that structural change has contributed positively to the growth of the TFP of a sample of African countries. But, against the odds, relocation of labor between sectors does not result in a significant change of sector-specific labor productivity. Furthermore, I also analyzed the effect of structural change on the GDP growth rate of Ethiopian economy. Following wide-ranging policy reforms adopted since 1991, a considerable change in the structure of production is perceived. Change in the structure of the economy boosts GDP growth rate both in the short run and long run through the relocation of labor mainly from the agriculture and manufacturing sectors to the service sector. Hence, developing countries should promote the relocation of labor from the agriculture sector to the modern sectors to increase TFP growth and GDP growth.