Lin, Justin Yifu2014-09-022014-09-022010-02https://hdl.handle.net/10986/19919As 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 stage of development to another. Therefore, the optimal industrial structure of a given economy will be different at different stages of development. Each industrial structure requires corresponding infrastructure (both "hard" and "soft") to facilitate its operations and transactions. Second, each stage 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 stages ("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 stage 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 stage. 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.Este documento se centra en los desafíos del desarrollo a largo plazo. Analiza la evolución del pensamiento sobre el desarrollo desde el término de la Segunda Guerra Mundial y sugiere un marco que permita que los países en vías de desarrollo logren crecer de manera sostenible, erradiquen la pobreza y reduzcan la brecha de ingresos con los países desarrollados. El marco propuesto, denominado enfoque neoclásico respecto de sus estructuras y el cambio en el proceso de desarrollo económico, o nueva economía estructural, se basa en algunos de los conocimientos de la vieja escuela de economía estructuralista. Pone de relieve la idea de que las características estructurales deben ser consideradas en el análisis del proceso de desarrollo económico, y que el estado debe actuar de facilitador, ayudando a un país en desarrollo a convertir su estructura atrasada en una moderna. Sin embargo, este nuevo marco también considera que las diferencias estructurales entre los países en vías de desarrollo y los desarrollados son en gran parte endógenas a las estructuras de su dotación de recursos y determinadas por las fuerzas del mercado, en lugar de ser una consecuencia de la distribución del poder u otras rigideces determinadas exógenamente, como suponía el antiguo enfoque estructuralista.en-USCC BY 3.0 IGOACCESS TO INFORMATIONAGRICULTUREAMOUNT OF CAPITALARBITRAGEBANK ACCOUNTBANK LENDINGBINDING CONSTRAINTBONDBOND FINANCINGBUDGET CONSTRAINTSBUSINESS CYCLESCAPITAL INFLOWSCAPITAL INVESTMENTCAPITAL REQUIREMENTSCENTRAL BANKCENTRAL BANKSCENTRAL PLANNINGCLASSICAL ECONOMICSCOLLECTIVE ACTIONCOLLECTIVE ACTIONSCOMMODITY PRICECOMMODITY PRICESCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPETITIVE ADVANTAGECOMPETITIVE MARKETCOMPETITIVE MARKETSCREDIT RATIONINGCURRENCY COMPOSITIONDEBTDEBT CRISISDECISION TREEDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT AGENCIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICIESDEVELOPMENT PROJECTSDEVELOPMENT STRATEGIESDEVELOPMENT STRATEGYDOMESTIC CURRENCIESDOMESTIC CURRENCYDOMESTIC MARKETDOMESTIC MARKETSECONOMIC COOPERATIONECONOMIC DEVELOPMENTECONOMIC EFFICIENCYECONOMIC GROWTHECONOMIC HISTORIANSECONOMIC LIBERALIZATIONECONOMIC LIFEECONOMIC SECTORSECONOMIC STRUCTUREECONOMIC STRUCTURESECONOMIC SYSTEMSECONOMIC THEORIESECONOMIC THEORYECONOMICSECONOMICS LITERATUREECONOMICS RESEARCHECONOMIES OF SCALEECONOMISTSELASTICITYEQUIPMENTEQUITY MARKETEQUITY MARKETSEXCESS DEMANDEXCHANGE RATEEXPENDITUREEXPENDITURESEXTERNAL ASSETSEXTERNAL FUNDINGEXTERNALITIESEXTERNALITYFINANCIAL CAPITALFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL HISTORYFINANCIAL SECTORFINANCIAL STRUCTUREFINANCIAL SYSTEMFIRM PERFORMANCEFISCAL POLICIESFISCAL POLICYFOREIGN CAPITALFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EQUITYFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVEFREE TRADEGDPGLOBAL ECONOMYGLOBAL MARKETGLOBAL MARKETSGLOBALIZATIONGOVERNMENT INTERVENTIONGOVERNMENT INTERVENTIONSGOVERNMENT INVESTMENTGOVERNMENT REVENUESGOVERNMENT SAVINGSGOVERNMENT SPENDINGGROSS DOMESTIC PRODUCTGROSS NATIONAL PRODUCTGROWTH POTENTIALGROWTH RATEHUMAN CAPITALIMPORT QUOTASINCOMEINCOME LEVELINCOME LEVELSINDUSTRIALIZATIONINEFFICIENCYINFLATIONINFLATION RATESINFORMATIONAL ASYMMETRYINFRASTRUCTURE INVESTMENTSINSTRUMENTINSURANCEINTANGIBLEINTEREST RATEINTEREST RATE POLICYINTEREST RATESINTERNATIONAL BANKINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL MARKETSINTERNATIONAL TRADEINVESTMENT CLIMATEINVESTMENT DECISIONINVESTMENT INSTRUMENTSINVESTMENT OPPORTUNITIESINVESTMENT PROJECTSKEYNESIAN ECONOMICSLAISSEZ FAIRELEGAL FRAMEWORKLEGAL FRAMEWORKSLENDERSLEVEL OF RISKLIQUIDITYLOCAL BANKSLOCAL MARKETSMACROECONOMIC ENVIRONMENTMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMACROECONOMIC VOLATILITYMACROECONOMICSMARGINAL RATE OF RETURNMARKET CONFIDENCEMARKET ECONOMIESMARKET ECONOMYMARKET FAILURESMARKET MECHANISMMARKET SHARESMARKET SIZEMARKET TRANSACTIONSMATURE MARKETSMATURITYMICROECONOMIC ANALYSESMONETARY POLICYMONEY SUPPLYMONOPOLIESMONOPOLYMULTIPLIERSNATIONAL ECONOMIESNATIONAL INCOMENATURAL MONOPOLIESNATURAL RESOURCESNEOCLASSICAL ECONOMICSNET EXPORTSOPEN ECONOMYOUTSTANDING DEBTOVERVALUATIONPATENTSPER CAPITA INCOMEPORTFOLIOPORTFOLIO MANAGEMENTPRICE ELASTICITYPRICE ELASTICITY OF DEMANDPRICE FLUCTUATIONSPRICE STABILITYPRIVATE CAPITALPRIVATE CAPITAL INFLOWSPRIVATE INVESTMENTPRODUCTION COSTSPRODUCTIVITY GROWTHPRODUCTIVITY INCREASESPROPERTY RIGHTSPROTECTIONISMPUBLIC INVESTMENTSPURCHASING POWERRESERVESRETURNSRISK SHARINGSHADOW PRICESSHORT-TERM INTEREST RATESSOCIAL CAPITALSOCIAL NETWORKSSTRUCTURAL CHANGETAXTAX REVENUESTAX SUBSIDIESTELECOMMUNICATIONSTOTAL OUTPUTTRANSACTIONTRANSACTION COSTTRANSACTION COSTSTRANSITION ECONOMIESTRANSPARENCYTRUST FUNDUNEMPLOYMENTWAGESWEALTH10.1596/1813-9450-5197