Publication:
New Structural Economics : A Framework for Rethinking Development

dc.contributor.authorLin, Justin Yifu
dc.date.accessioned2013-05-21T20:52:23Z
dc.date.available2013-05-21T20:52:23Z
dc.date.issued2011-08-01
dc.description.abstractAs 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.citationWorld Bank Research Observer
dc.identifier.doi10.1596/13507
dc.identifier.issn1564-6971
dc.identifier.issndoi:10.1093/wbro/lkr007
dc.identifier.urihttps://hdl.handle.net/10986/13508
dc.language.isoen_US
dc.publisherWorld Bank
dc.relation.ispartofseriesWorld Bank Research Observer
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo/
dc.subjectclassical economists
dc.subjectdevelopment agencies
dc.subjectdiminishing returns
dc.subjecteconomic development
dc.subjecteconomic growth
dc.subjecteconomic historians
dc.subjecteconomic theories
dc.subjectEconomics
dc.subjecteconomists
dc.subjectexternalities
dc.subjectfinancial crisis
dc.subjectgrowth theories
dc.subjectgrowth theory
dc.subjecthuman capital
dc.subjectincome
dc.subjectindustrialization
dc.subjectmarginal cost
dc.subjectper capita income
dc.subjectproduction functions
dc.subjectstructural change
dc.titleNew Structural Economics : A Framework for Rethinking Developmenten
dc.typeJournal Articleen
dc.typeArticle de journalfr
dc.typeArtículo de revistaes
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.date.disclosure2013-02-01
okr.date.doiregistration2025-05-06T11:24:51.755976Z
okr.doctypeJournal Article
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeSocial Protection and Labor
okr.globalpracticePoverty
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid368751468181776674
okr.identifier.report81422
okr.journal.nbpages193-221
okr.language.supporteden
okr.peerreviewAcademic Peer Review
okr.region.countryBrazil
okr.region.countryChina
okr.region.countryIndia
okr.region.geographicalSouth Asia
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.topicMacroeconomics and Economic Growth::Political Economy
okr.topicPoverty Reduction::Inequality
okr.topicPoverty Reduction::Pro-Poor Growth
okr.topicPrivate Sector Development::Emerging Markets
okr.topicSocial Protections and Labor::Labor Policies
okr.volume26(2)
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relation.isAuthorOfPublication.latestForDiscovery6f9860c3-5c17-54f1-92fb-9f5055cc0038
relation.isJournalIssueOfPublicationd4528ba7-31c8-4f47-8936-941115ec8a42
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relation.isJournalVolumeOfPublication61faf3f2-961c-4f35-99db-1c8ec8c2ccfb
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