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INFORMATION TO USERS While the most advanced technology has been used to photograph and reproduce this manuscript, the quality of the reproduction is heavily dependent upon the quality of the material submitted. For example: • Manuscript pages may have indistinct print. In such cases, the best available copy has been filmed. • Manuscripts may not always be complete. In such cases, a note will indicate that it is not possible to obtain missing pages. • Copyrighted material may have been removed from the manuscript. In such cases, a note will indicate the deletion. Oversize materials (e.g., maps, drawings, and charts) are photographed by sectioning the original, beginning at the upper left-hand corner and continuing from left to right in equal sections with small overlaps. Each oversize page is also filmed as one exposure and is available, for an additional charge, as a standard 35mm slide or as a 17”x 23” black and white photographic print. Most photographs reproduce acceptably on positive microfilm or microfiche but lack the clarity on xerographic copies made from the microfilm. For an additional charge, 35mm slides of 6”x 9” black and white photographic prints are available for any photographs or illustrations that cannot be reproduced satisfactorily by xerography. Order Number 8726704 Temporal and spatial variation in sectoral labor allocation during development Pandit, Kavita K., Ph.D. The Ohio State University, 1987 Copyright ©1988 by Pandit, Kavita K. All rights reserved. U MI 300 N. Zeeb Rd. Ann Arbor, MI 48106 PLEASE NOTE: In all cases this material has been filmed in the best possible way from the available copy. Problems encountered with this document have been identified here with a check mark V . 1. Glossy photographs or _____pages 2. Colored illustrations, paper or ______print 3. Photographs with dark background _ 4. Illustrations are poor copy______ 5. Pages with black marks, not original copy 6. Print shows through as there is text on both sides_______ of p a g e 7. Indistinct, broken or small print on several pages 8. Print exceeds margin requirements______ 9. Tightly bound copy with print lost_______ in spine 10. Computer printout pages with indistinct______ print 11. Page(s)____________lacking when material received, and not available from school or author. 12. Page(s)____________seem to be missing in numbering only as text follows. 13. Two pages num bered . Text follows. 14. Curling and wrinkled pages______ 15. Dissertation contains pages with print at a slant, filmed as received_________ 16. Other___________________________________________________________________ University Microfilms International TEMPORAL AND SPATIAL VARIATION IN SECTORAL LABOR ALLOCATION DURING DEVELOPMENT DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Kavita K. Pandit, B.Arch., M.C.R.P., M.A. The Ohio State University 1907 Dissertation Committeet Approved by Krishnan Namboodiri/ Ph.D. Burkhard von Rabenau, Ph.D. Randy Smith, Ph.D. __________________________ Emilio Casetti, Advisor Department of Geography ©1988 KAVITA K. PANDIT All Rights Reserved DEDICATION To my parents - ii - ACKNOWLEDGEMENTS I would like to express my sincere appreciation to Pro fessor Emilio Casetti for his guidance, encouragement and support throughout my years in the Department of Geography. Over this period. Professor Casetti has been a teacher, an advisor, a colleague, and a friend. His deep concern for the welfare of his students, and the professionalism and integrity that underly his interactions with them have greatly impressed me. I look forward to our continued association. I would also like to thank my dissertation committee members, Professor Gauthier, Professor Namboodiri, Pro fessor von Rabenau, and Professor Smith for their support. I have benefited greatly through their courses and through personal interaction with them. Finally, I would like to acknowledge the financial assistance provided by the Graduate School at Ohio State, which allowed me an uninterrupted year of work on my dis sertation, and by the Department of Geography at Ohio State. - iii - VITA October 24, 1956 ........ Born, Bombay, India 1978 ...................... B.Arch., Architecture, Bombay University, Bombay, India 1979-1981 ................. Teaching Associate, Department of Engineering Graphics, The Ohio State University, Columbus, Ohio 1981 ...................... M.C.R.P., City and Regional Planning, The Ohio State University, Columbus, Ohio 1981-1982 ................. Project Planner, Centre for Development Studies and Activities, Poona, India 1983 ...................... M.A., Geography, The Ohio State University, Columbus, Ohio 1982-1986 ................. Teaching Associate, Department of Geography, The Ohio State University, Columbus, Ohio 1986-1987 ................. Presidential Fellow, The Ohio State University, Columbus, Ohio PUBLICATIONS "Sectoral Allocation of Labor Force with Development and the Effect of Trade Activity," ECONOMIC GEOGRAPHY 62 (2), April 1986i 144-154. "Service Employment During Development and Economic Dualism," in PROCEEDINGS OF THE RAPID II POPULATION POLICY FELLOWS WORKSHOP, Washington D.C.i U.S. Agency for International Development, 1986t 206-223. "Changes in Tertiary Sector Employment During Development," MODELING AND SIMULATION 16 (1), April 1985i 373-377. - iv - "A Catastrophe Model of Urbanization,” MODELING AND SIMULATION 15 (1), April 1984* 201-206, (with E. Casetti). COSTS AND BENEFITS OF ANNEXATION IN LIMA, OHIO, Report submitted to the Joint Planning Commission of Lima, Ohio, 1980, (with Steve Gordon et al). FIELDS OF STUDY Major Field* Development Studies in Population/Demography: Professors Casetti, von Rabenau, and Namboodiri Studies in Regional Development* Professors Casetti and Gauthier Studies in Urban Geography* Professors Casetti, L.A. Brown, and Smith - v TABLE OF CONTENTS PAGE Dedication ..................... ............ 11 Acknowledgements ........... ................ Ill VITA ........................................................ lv LIST OF T A B L E S ...................... ix LIST OF FIGURES ......................................... xi CHAPTER I. INTRODUCTION ...................................... 1 1.1 PROBLEM STATEMENT ........................ 2 1.2 LABOR FORCE SHIFTS AND ECONOMIC DEVELOPMENT ............................... 6 1.3 ORGANIZATION OF THE DISSERTATION . 10 II. SECTORAL LABOR ALLOCATION DURING DEVELOPMENT . 12 2.1 DEFINITION OF THE SECTORS ............ 12 2.2 CHANGES IN SECTORAL LABOR ALLOCATION . 15 2.3 THEORETICAL DETERMINANTS OF SECTORAL LABOR SHIFTS ......................... 17 2.3.1 Demand Determinants ............. 17 2.3.1.1 Household Demand ........... 17 2.3.1.2 Intermediate Demand ..... 21 2.3.1.3 Foreign Demand ............. 24 2.3.2 Production Determinants ......... 27 2.3.2.1 Differentials in Factor I n t e n s i t y ................... 29 - vi - 2.3.2.2 Differentials in Elasticities of Factor Substitution ................ 31 2.3.2.3 Differentials in Technological Growth Rates . 32 2.3.2.4 Differentials in Economies of S c a l e .......................34 III. SECTORAL SHIFTS AND THE SERVICE SECTOR IN THE THIRD WORLD ............................... 37 3.1 DIFFERENTIAL PATTERNS OF LABOR ALLOCATION IN THE LDC'S ............... 38 3.1.1 Sequence of Sectoral Shifts and Tertiary Hypertrophy ............. 39 3.1.2 Service Sector Dualism ...... 45 3.2 EXPLANATIONS OF TERTIARY SECTOR HYPERTROPHY AND DUALISM ................ 50 3.2.1 Service Sector Growth as R e s i d u a l .......................... 51 3.2.1.1 Demand-Oriented Explanations ................ 52 3.2.1.2 Supply-Oriented Explanations ........... 57 3.2.2 Service Sector Growth as Demand Determined ............. ..... 62 3.2.2.1 Long-term Economic Changes . 64 3.2.2.2 Government Demand ...... 67 IV. SECTORAL LABOR ALLOCATION - RECENT PATTERNS . 69 4.1 WORLD PATTERNS ............................69 4.2 MDC VS. LDC PATTERNS ..................... 72 4.3 SECTORAL SHARES BY LDC REGION ............. 75 4.4 INTRA-REGIONAL VARIATION IN SECTORAL SHARES .................................... 79 V. EMPIRICAL ANALYSIS OF SECTORAL SHIFTS ......... 82 5.1 SECTORAL LABOR ALLOCATION AND DEVELOPMENT ................................82 5.1.1 The Sectoral Shifts Model .... 85 5.1.2 Data and Methodology ............... 87 5.1.3 Results ............................. 88 5.2 VARIATION IN THE SECTORAL SHIFTS MODEL ...................................... 93 5.2.1 Expansion of the Sectoral Shifts Model ....................... 95 - vii - 5.2.1.1 The Initial Model ........... 95 5.2.1.2 The Expansion Equations . 95 5.2.1.3 The Terminal Model ......... 97 5.2.2 Data and Methodology ................ 98 5.2.3 Results ............................. 99 5.2.3.1 Temporal Variation ......... 99 5.2.3.2 Spatial Variation ........... 106 VI. SUMMARY AND CONCLUSIONS ......................... 117 6.1 THE SECTORAL SHIFTS MODEL .............. 119 6.2 VARIATION IN THE SECTORAL SHIFTS MODEL ..................................... 120 6.2.1 Temporal Drift ......................121 6.2.2 Regional Drift ..................... 122 APPENDICES A. LIST OF COUNTRIES AND DATA USED IN THE ANALYSIS ................................... 125 B. LIST OF COUNTRIES BY DEVELOPMENT CLASSIFICATION ........................... 141 C. LIST OF LESS DEVELOPED COUNTRIES BY REGION . , 143 BIBLIOGRAPHY .............................................. 145 - viii - LIST OP TABLES List of Structural Changes ...................