Share in hours worked Manufacturing Log of GDP per capita 1990 international 1

Share in hours worked manufacturing log of gdp per

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⊗⊗⊗ ⊗⊗ ⊗⊗⊗⊗⊗⊗⊗⊗⊗⊗ ⊗⊗⊗⊗⊗⊗⊗⊗⊗ ⊗⊗⊗⊗⊗⊗ + + ++ + +++++ + + + + ++++++ + + ++++++ ++ + + ++ +++ Share in hours worked Manufacturing Log of GDP per capita (1990 international $) 0 . 0 0 . 1 0 . 2 0 . 3 0 . 4 0 . 5 0 . 6 0 . 7 0 . 8 6 . 0 6 . 5 7 . 0 7 . 5 8 . 0 8 . 5 9 . 0 9 . 5 10 . 0 10 . 5 11 . 0 ⊗⊗ ⊗⊗ ⊗⊗ ⊗⊗⊗⊗⊗⊗⊗⊗ ⊗⊗⊗⊗⊗⊗⊗ ⊗⊗⊗⊗⊗⊗ + + ++ + +++++ + + + + + +++++ + + ++++++ ++ + + ++ +++ Share in hours worked Services Log of GDP per capita (1990 international $) Value added 0 . 0 0 . 1 0 . 2 0 . 3 0 . 4 0 . 5 0 . 6 0 . 7 0 . 8 6 . 0 6 . 5 7 . 0 7 . 5 8 . 0 8 . 5 9 . 0 9 . 5 10 . 0 10 . 5 11 . 0 ⊗⊗⊗⊗ ⊗⊗⊗⊗⊗⊗ ⊗⊗⊗⊗⊗⊗⊗⊗⊗ ⊗⊗⊗⊗⊗⊗⊗⊗⊗⊗⊗⊗ +++++++++++++++++++++++++ Share in value added (current prices) Agriculture Log of GDP per capita (1990 international $) 0 . 0 0 . 1 0 . 2 0 . 3 0 . 4 0 . 5 0 . 6 0 . 7 0 . 8 6 . 0 6 . 5 7 . 0 7 . 5 8 . 0 8 . 5 9 . 0 9 . 5 10 . 0 10 . 5 11 . 0 ⊗⊗⊗⊗ ⊗⊗ ⊗⊗ ⊗⊗⊗ ⊗⊗ ⊗⊗⊗⊗⊗⊗⊗⊗ ⊗⊗ ⊗⊗⊗⊗⊗ + +++ + ++ ++++ +++ + + ++ + + + +++++ + ++ + + ++++ Share in value added (current prices) Manufacturing Log of GDP per capita (1990 international $) 0 . 0 0 . 1 0 . 2 0 . 3 0 . 4 0 . 5 0 . 6 0 . 7 0 . 8 6 . 0 6 . 5 7 . 0 7 . 5 8 . 0 8 . 5 9 . 0 9 . 5 10 . 0 10 . 5 11 . 0 ⊗⊗⊗⊗⊗ ⊗⊗ ⊗⊗ ⊗⊗ ⊗⊗ ⊗⊗⊗⊗⊗⊗ ⊗⊗ ⊗⊗ ⊗⊗⊗⊗⊗ + + ++ + ++ +++ + + + + + + ++ + + + ++++ + + ++ + + ++++ Share in value added (current prices) Services Log of GDP per capita (1990 international $) Austria ⊗⊗⊗ Belgium Denmark Spain Finland France Germany Greece Ireland Italy Luxembourg Netherland Portugal Sweden +++ United Kingdom 15 EU Countries Source: EU KLEMS, PWT6.3 12
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the lowest income in the sample. We first document the evolution of the shares of sectoral hours worked and nominal value added as functions of the level of development for five non–European countries – i.e., Aus- tralia, Canada, Japan, Korea and the United States – as well as for the aggregate of fifteen EU countries. 13 The data are plotted in Figure 2. The vertical axis is either the share of total hours worked or the share of value added in current prices in the three broad sectors of interest. As before, the horizontal axis is the log of GDP per capita in 1990 international dollars from Maddison. The plots in Figure 2 confirm several patterns from the historical times series. First, the shares of hours worked and nominal value added for agriculture tend to decrease with the level of development for all countries, whereas the shares for services tend to increase with the level of development for all countries. Second, taken as a whole, the data are consistent with a hump shape for the shares in the manufacturing sector, although all countries except for Korea have decreasing manufacturing shares. Third, the series for both shares as a function of GDP per capita are quite consistent across countries. That is, not only are the qualitative patterns very similar, but so too are the quantitative patterns. This is of particular interest given the considerable attention that has been placed on the role of openness in the growth miracle of Korea (Korea liberalized its manufacturing trade starting in the 1960s and became one of the most open countries in the world). Although to a lesser extent, one could make similar
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