New Structural Economics : A Framework for Rethinking Development Lin, Justin Yifu 2013-05-21T20:52:23Z 2013-05-21T20:52:23Z 2011-08-01
dc.description.abstract As strategies for achieving sustainable growth in developing countries are re-examined in light of the financial crisis, it is critical to take into account structural change and its corollary, industrial upgrading. Economic literature has devoted a great deal of attention to the analysis of technological innovation, but not enough to these equally important issues. The new structural economics outlined in this paper suggests a framework to complement previous approaches in the search for sustainable growth strategies. It takes the following into consideration. First, an economy's structure of factor endowments evolves from one level of development to another. Therefore, the optimal industrial structure of a given economy will be different at different levels of development. Each industrial structure requires corresponding infrastructure (both “hard” and “soft”) to facilitate its operations and transactions. Second, each level of economic development is a point along the continuum from a low-income agrarian economy to a high-income industrialized economy, not a dichotomy of two economic development levels (“poor” versus “rich” or “developing” versus “industrialized”). Industrial upgrading and infrastructure improvement targets in developing countries should not necessarily draw from those that exist in high-income countries. Third, at each given level of development, the market is the basic mechanism for effective resource allocation. However, economic development as a dynamic process requires industrial upgrading and corresponding improvements in “hard” and “soft” infrastructure at each level. Such upgrading entails large externalities to firms' transaction costs and returns to capital investment. Thus, in addition to an effective market mechanism, the government should play an active role in facilitating industrial upgrading and infrastructure improvements." en
dc.identifier.citation World Bank Research Observer
dc.identifier.issn 1564-6971
dc.identifier.issn doi:10.1093/wbro/lkr007
dc.language.iso en_US
dc.publisher World Bank
dc.relation.ispartofseries World Bank Research Observer
dc.rights CC BY-NC-ND 3.0 IGO
dc.rights.holder World Bank
dc.subject classical economists
dc.subject development agencies
dc.subject diminishing returns
dc.subject economic development
dc.subject economic growth
dc.subject economic historians
dc.subject economic theories
dc.subject Economics
dc.subject economists
dc.subject externalities
dc.subject financial crisis
dc.subject growth theories
dc.subject growth theory
dc.subject human capital
dc.subject income
dc.subject industrialization
dc.subject marginal cost
dc.subject per capita income
dc.subject production functions
dc.subject structural change
dc.title New Structural Economics : A Framework for Rethinking Development en
dc.type Journal Article en
dc.type Article de journal fr
dc.type Artículo de revista es
dspace.entity.type Publication
okr.crosscuttingsolutionarea Jobs 2013-02-01
okr.doctype Journal Article
okr.globalpractice Macroeconomics and Fiscal Management
okr.globalpractice Social Protection and Labor
okr.globalpractice Poverty
okr.globalpractice Finance and Markets
okr.globalpractice Trade and Competitiveness
okr.journal.nbpages 193-221
okr.language.supported en
okr.peerreview Academic Peer Review Brazil China India
okr.region.geographical South Asia
okr.topic Finance and Financial Sector Development :: Access to Finance
okr.topic Finance and Financial Sector Development :: Banks & Banking Reform
okr.topic Finance and Financial Sector Development :: Debt Markets
okr.topic Macroeconomics and Economic Growth :: Economic Growth
okr.topic Macroeconomics and Economic Growth :: Economic Theory & Research
okr.topic Macroeconomics and Economic Growth :: Political Economy
okr.topic Poverty Reduction :: Inequality
okr.topic Poverty Reduction :: Pro-Poor Growth
okr.topic Private Sector Development :: Emerging Markets
okr.topic Social Protections and Labor :: Labor Policies
okr.volume 26(2)
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relation.isJournalIssueOfPublication d4528ba7-31c8-4f47-8936-941115ec8a42
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relation.isJournalVolumeOfPublication 61faf3f2-961c-4f35-99db-1c8ec8c2ccfb
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