Structural transformation through technological change and innovation

Commodity dependence is persistent, difficult to emerge from and associated with lower levels of productivity in the manufacturing sector, as shown in the previous chapters. Therefore, any policy intervention to improve technological capacities in commodity dependent developing countries, to reduce commodity dependence, needs to focus on increasing labour productivity in the manufacturing sector. Productivity in these countries may also be low in agriculture and, comparatively, in services. Technological upgrading in these sectors may therefore also be important.

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