Often trade policy of a country is evaluated for its employment effect and a liberal import policy is criticised for its adverse impact on domestic employment in a more explicit manner. However, for reasons such as low worker reallocations due to trade and employment creation from a concomitant...

For a typical developing country, this paper shows that once inter-sectoral linkages are taken into account, closing the productivity gap in a number of services gives bigger gains in aggregate productivity than closing it in agriculture or in manufacturing. This is performed in the context of...