Tracing Empirical Trails ofSchumpeterian Development

Schumpeterian development is characterised by the simultaneous interplay of growthand qualitative transformations of the economic system. At the sectoral level, suchqualitative transformations become manifest as variations in the sectoral composition ofproduction. Following the implementation of Harberger’s method of visualising theimpact of differential productivity growth, dynamic panel estimations are applied to astandard growth model modified to include specific structural variables for both themanufacturing and the services sectors. Covering 28 countries over the period between1990 and 2000, the results give empirical substance to the evolutionary emphasis onSchumpeterian development as opposed to mere aggregate growth...