Abstract
This paper constructs a multi-sector model of growth with differences in TFP growth rates across intermediate sectors that accommodates both the Kaldor and Kuznets facts.The different levels of technology among intermediate sectors bring changes to the relative prices of the intermediate goods,and then cause reallocation of labor in those sectors.TFP growth rate in the final product sector is determined by the structure of the intermediate sectors.It changes monotonically as the economy grows,and its direction of change is determined by the elasticity of substitution between intermediate goods.
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