magnitude of sectoral employment and productivity differences between resource rich and resource poor regions. The model implies … already employed there. Resource induced structural transformation thus results in higher productivity in manufacturing and … lower productivity in non-manufacturing. We construct and calibrate a two sector, open economy model of self-selection and …

labour productivity. The service intensities in the sectoral production mix are lower in countries with higher manufacturing … shares. This holds for both catching up and developed economies. However, servitization is largely unrelated to productivity … and employment growth. Hence, we argue that the degree of servitization is contingent on and an attribute of the …