Finally, it is striking that the estimated rate of improvement in TFP for the aggregate
economy, 1.6 percent annually for the 1977-96 period in table 9, exceeds that of any individual
sector. In fact, the average annual rate of increase in value added-weighted TFP growth is only
0.5 percent for 1977-96 and it is zero for 1977-2004. The difference, 1.1 percent annually, is a
measure of the gains from resource reallocation. That is, the largest portion of the improvement
in overall TFP is the result of moving workers from the low-productivity agricultural sector to
industry and services.