Shifting resources towards low-growth industries hindering overall economic progress.
The study looked at productivity growth in different industries across 18 countries from 1970 to 2007. They found that productivity growth varies between industries, with resources shifting towards industries with lower growth. Despite measurement errors, structural changes in industries have generally supported growth. The data suggests that productivity growth plays a key role in economic growth, and supports the idea that it leads to more capital accumulation over time.