The paper presents a decomposition of productivity gap between South-Korea and Estonia for the year 2006. After presenting stylised facts related to income conver-gence, we apply shift-share analysis to explain the patterns of structural disparities both at aggregated sectoral level and within...

Sectoral changes are nowadays an integral feature of economic development in all countries and hence gaining attention of several economists. Structural changes occur in different aggregation levels, from inter-industry change to inter-sectoral change. In this paper we are considering shifts at...