While the effect of the reallocation of resources on real income is always positive, its effect on aggregate labour productivity is less clear. For one thing, the rise in commodity prices can be expected to lower productivity in the primary sector, as higher-cost - that is, less-productive - activities become more profitable.
On the other hand, the reallocation of capital and labour away from the production of manufactured goods toward the production of commodities should raise overall labour productivity, since labour productivity levels are higher in the more capital-intensive primary sector.