Appendix 1. Three variants in surplus labour (summarized from Wellisz, 1968)
Keynesian
Malthusian
Structural
Marginal productivity per
worker
>= Average productivity
> 0
= 0 or very low
< Average productivity
Average productivity
>= physical subsistence
level
< physical subsistence
level
>= physical subsistence
< physical subsistence
Removing some workers
Reduce output, not
recommended
Reduce output, not
recommended
No effect in output,
recommended
Causes
Structural misallocation of
labour (dual economy)
Excess population
Declining (lack) of demand
Solution
Public works (to increase
effective demand)
Increase food production
Decrease birth rate
Public works (to create
capital)
Transfer of worker from
agriculture to manufacture
(to increase aggregate
labour productivity)
Appendix 2. Comparison between output share of Belgium and USA
0 2 4 6 8 10 12 1970 1975 1980 1985 1990
Belgium agric. output share USA agric.output share
85 87 89 91 93 95 1970 1975 1980 1985 1990
Appendix 3. Efficiency, K/L and Y/L level of developed countries in 1975 and 1990 (intra and shift effect)
Developed countries Developing countries
1975 1990 1975 1990
Countries
Eff. K/La) Y/Lb) Eff. K/La) Y/Lb)
Countries
Eff. K/La) Y/Lb) Eff. K/La) Y/Lb) Norway 0.88 69.08 30.41 0.79 116.27 40.63 Korea 0.9 3.33 4.09 0.49 22.94 11.58 N. Zealand 0.59 64.63 20.29 0.51 72.84 25.8 Poland 0.24 12.47 3.32 0.1 33.59 3.55 Australia 0.7 69.87 24.19 0.64 69.91 31.96 Israel 0.81 39.38 23.54 0.73 61 35.06 UK 0.89 32.01 23.46 0.84 53.72 39.24 Peru 0.6 6.67 4.7 0.52 6.16 3.78 Canada 0.79 65.75 27.37 0.75 82.29 38.57 S. Africa 0.34 16.09 5.83 0.38 20.94 8.33 Sweden 0.98 64.06 33.94 0.96 93.57 49.39 Egypt 0.29 2.07 0.92 0.34 4.05 1.8 Greece 0.5 14.53 7.83 0.49 18.96 9.91 Taiwan 0.6 7.87 5.41 0.66 23.87 16.4 Denmark 0.72 57.87 24.89 0.78 86.95 40.05 Tunisia 0.27 6.61 2.12 0.34 8.62 3.29 USA 0.9 55.95 30.76 0.99 65.06 48.46 Cyprus 0.38 11.02 4.56 0.49 24.94 12.75 Italy 0.65 34.15 17.7 0.75 80.98 38.17 Czehoslo 0.28 17.33 5.21 0.39 17.65 7.32 Austria 0.63 50.6 20.49 0.75 77.63 38.43 Costa Ric 0.22 15.81 3.75 0.34 11.09 4.14 Japan 0.71 36.19 19.76 0.83 59.04 40 Jamaica 0.43 6.52 3.32 0.55 3.64 2.67 Nederland 0.74 63.03 25.61 0.87 94 44.46 India 0.21 1.49 0.46 0.35 1.15 0.56 France 0.76 61.97 26.28 0.9 88.34 46.08 Pakistan 0.17 1.7 0.43 0.32 1.5 0.7 Turkey 0.44 5.36 2.85 0.62 4.73 3.67 Venezuela 0.26 26.57 6.16 0.42 14.82 6.74 Finland 0.73 52.34 24.2 0.96 117.57 49.29 Indonesia 0.5 0.86 0.56 0.68 1.11 1.05 Belgium 0.73 66.71 25.25 1 92.17 51.4 Chile 0.19 13.68 2.74 0.39 8.64 3.81 Colombia 0.32 5.83 2.22 0.58 4.12 3.08 Philippines 0.49 1.77 1.31 0.93 1.19 1.56 Sri Lanka 0.25 1.67 0.62 0.79 0.76 0.76 Average 0.73 50.83 22.66 0.79 74.94 37.38 Average 0.39 9.94 4.06 0.49 13.59 6.45 Notes: Data is arranged vertically on the basis of difference between efficiency 1975 and 1990
a) Gross fixed capital stock per worker (in 1990 USD) b) GDP per worker (in 1990 USD)
Appendix 4. Decomposition of labour productivity growth 1975 – 1990 in developed and developing countries
(intra effect E=1)
Decomposition of growth Decomposition of growth
K/La) 1975 Growthb) L C I K/La) 1975 Growthb) L C I Turkey 4.95 -0.04 1.82 -1.86 0.00 Jamaica 6.86 -2.86 0.84 -3.70 0.00 Greece 14.53 1.18 0.01 1.17 0.00 Venezuela 26.57 -0.42 2.68 -3.52 0.42 New Zealand 65.20 1.92 -0.57 0.05 2.44 Peru 6.32 0.03 -0.52 0.55 0.00 Australia 70.28 1.94 -0.51 -0.04 2.49 Costa Rica 15.81 0.10 2.34 -2.24 0.00
Norway 69.44 1.97 -0.71 0.09 2.59 Poland 12.15 0.38 -5.83 5.45 0.76
Canada 67.92 2.37 -0.29 0.10 2.56 Philippines 1.78 0.81 4.21 -3.40 0.00 Sweden 64.75 2.52 -0.16 0.16 2.53 Colombia 5.85 0.91 3.17 -2.27 0.00
USA 55.12 2.99 0.50 0.20 2.29 Sri Lanka 1.65 1.08 7.73 -6.65 0.00
Denmark 57.97 3.03 0.34 0.26 2.43 India 1.50 1.14 3.41 -2.28 0.00 UK 32.50 3.51 -0.26 1.94 1.83 South Africa 15.01 1.60 0.47 1.13 0.00 France 62.55 3.67 0.99 0.19 2.49 Chile 13.68 1.95 4.48 -2.53 0.00 Netherlands 62.49 3.69 1.01 0.19 2.49 Czechoslovakia 17.34 2.07 1.87 0.21 0.00 Austria 51.38 4.02 1.07 0.48 2.46 Tunisia 6.60 2.43 1.03 1.40 0.00 Japan 35.20 4.21 0.49 1.78 1.94 Israel 41.23 2.46 -0.86 1.09 2.24 Finland 52.33 4.71 1.77 0.47 2.47 Pakistan 1.70 3.19 4.13 -0.94 0.00 Italy 34.45 4.74 0.52 2.09 2.12 Indonesia 0.84 3.24 1.77 1.47 0.00 Belgium 67.46 4.75 2.07 0.12 2.57 Egypt 2.07 3.74 1.25 2.49 0.00 Cyprus 11.36 5.28 -0.11 4.92 0.47 Average 51.09 3.01 0.48 0.43 2.10 Korea 2.85 5.52 -4.84 10.36 0.00 Taiwan, China 7.00 6.44 0.43 6.00 0.00 Average 9.91 1.95 1.38 0.38 0.19
Note Data is arranged vertically on the basis of growth a) Gross fixed capital stock per worker (in 1990 USD)
Appendix 5. Labour productivity frontier in 1975 and 1990 for E=0.7; E=0.5; E=0.3; and E=0
0 10 20 30 40 50 60 0 20 40 60 80 100 120Capi tal / wor ker (1990 USD) Y / L 19 7 5 & Y / L 19 9 0 Fr on t ier 19 7 5 Fr on t ier 19 9 0
0 10 20 30 40 50 60 0 20 40 60 80 100 120
Capi t al / wor k er (1990 USD ) Y / L 19 7 5 & Y / L 19 9 0 Fr on t ier 19 7 5 Fr on t ier 19 9 0
0 10 20 30 40 50 60 0 20 40 60 80 100 120
Capi tal / wor ker (1990 USD) Y / L 19 7 5 & Y / LY / L 19 9 0 Fr on t ier 19 7 5 Fr on t ier 19 9 0
0 10 20 30 40 50 60 0 20 40 60 80 100 120
Capi tal / wor ker (1990 USD) Y / L 19 7 5 & Y / L 19 9 0 Fr on t ier 19 7 5 Fr on t ier 19 9 0
Appendix 6. Leader countries in labour productivity frontier 1975 and 1990 for E=0.7; E=0.5; E=0.3; and E=0
Leader countries in laour productivity frontier 1975
Intra effect (E=0.7) Intra effect (E=0.5) Intra effect (E=0.3) Intra effect (E=0)
K/L Y/L K/L Y/L K/L Y/L K/L Y/L
Indonesia 1971 0.46 0.47 Indonesia 1971 0.46 0.47 Indonesia 1971 0.46 0.47 Indonesia 1971 0.46 0.47
Korea 1971 2.18 3.41 Korea 1971 2.18 3.40 Korea 1971 2.18 3.40 Korea 1971 2.18 3.39
UK 1970 19.60 20.68 UK 1970 19.60 20.68 UK 1970 19.60 20.68 UK 1970 19.60 20.68
UK 1973 27.75 24.42 UK 1973 27.75 24.38 UK 1973 27.75 24.35 UK 1973 27.75 24.29
Sweden 1970 38.81 28.97 Sweden 1970 38.81 28.97 Sweden 1970 38.81 28.97 Sweden 1970 38.81 28.97
Sweden 1971 42.98 30.47 Sweden 1971 42.98 30.42 Sweden 1971 42.98 30.36 USA 1973 47.52 31.76
USA 1973 47.52 31.80 USA 1973 47.52 31.79 USA 1973 47.52 31.78 Sweden 1974 57.45 33.26
Sweden 1974 57.45 33.99 Sweden 1974 57.45 33.78 Sweden 1974 57.45 33.57
Leader countries in laour productivity frontier 1990
Intra effect (E=0.7) Intra effect (E=0.5) Intra effect (E=0.3) Intra effect (E=0)
K/L Y/L K/L Y/L K/L Y/L K/L Y/L
Indonesia 1971 0.46 0.47 Indonesia 1971 0.46 0.47 Indonesia 1971 0.46 0.47 Indonesia 1971 0.46 0.47
Korea 1971 2.18 3.41 Korea 1971 2.18 3.40 Korea 1971 2.18 3.40 Korea 1971 2.18 3.39
UK 1970 19.60 20.68 UK 1970 19.60 20.68 UK 1970 19.60 20.68 UK 1970 19.60 20.68
Belgium 1985 45.80 44.62 Belgium 1985 45.80 44.37 Belgium 1985 45.80 44.12 Belgium 1985 45.80 43.74
Belgium 1989 73.99 50.47 Belgium 1989 73.99 50.20 Belgium 1989 73.99 49.94 USA 1990 64.83 47.68
Belgium 1990 92.91 50.92 Belgium 1990 92.91 50.65 Belgium 1990 92.91 50.39 Belgium 1989 73.99 49.55
