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This paper provides a comprehensive assessment of structural change in the world economy. The analysis relies on a newly constructed dataset comprising 169 countries and covering the period from 1991 to 2013. Shapley decompositions are employed to evaluate the pace and pattern of structural change across regions and sub‐regions. Country‐level estimates are then used to conduct an original empirical exercise on the determinants of structural change. The results suggest that labor reallocations (structural change) have played a critical role in enhancing economic performance since the early 2000s, even if they remain comparatively less important than within‐sector productivity improvements. The widespread reallocation of labor from agriculture to the services sectors has been the key driver of structural change. Finally, we find robust evidence that the pace of structural change is significantly shaped by human and physical capital. The policy implication is that investments in education and economic infrastructure are crucial to accelerating structural change. [ABSTRACT FROM AUTHOR]

Abstract: This article investigates the pace and pattern of structural change in Ethiopia. It departs from the existing literature in two main ways. First, it uses a methodology that enables a more comprehensive assessment of structural change. Second, it entailed the construction of a consistent dataset for Ethiopia—comprising three labour force surveys—tracking 10 economic sectors between 1999 and 2013. Our analysis suggests that the structure of production has changed considerably, but that shifts in the composition of employment have lagged behind. Output per capita growth has been strong and mainly driven by within‐sector productivity improvements. However, the contribution of structural change has increased over time, which is encouraging. Evidence of a growing demographic dividend is also uncovered. [ABSTRACT FROM AUTHOR]