TY - CHAP
T1 - Growth and Structural Transformation
AU - Herrendorf, Berthold
AU - Rogerson, Richard
AU - Valentinyi, Ákos
N1 - Funding Information:
We thank Francesco Caselli, Rachel Ngai, Todd Schoellman, and Gustavo Ventura for commenting on earlier versions of this manuscript, and Christopher Herrington for excellent research assistance. For financial support, Herrendorf thanks the Spanish Ministry of Education (Grants ECO2009-11165 and ECO2012-31358 ); Rogerson thanks both the NSF and the Korea Science Foundation (WCU-R33-10005); and Valentinyi thanks the Hungarian Scientific Research Fund (OTKA) (Project K-105660-ny).
PY - 2014
Y1 - 2014
N2 - Structural transformation refers to the reallocation of economic activity across the broad sectors agriculture, manufacturing, and services. This review article synthesizes and evaluates recent advances in the research on structural transformation. We begin by presenting the stylized facts of structural transformation across time and space. We then develop a multi-sector extension of the one-sector growth model that encompasses the main existing theories of structural transformation. We argue that this multi-sector model serves as a natural benchmark to study structural transformation and that it is able to account for many salient features of structural transformation. We also argue that this multi-sector model delivers new and sharper insights for understanding economic development, regional income convergence, aggregate productivity trends, hours worked, business cycles, wage inequality, and greenhouse gas emissions. We conclude by suggesting several directions for future research on structural transformation.
AB - Structural transformation refers to the reallocation of economic activity across the broad sectors agriculture, manufacturing, and services. This review article synthesizes and evaluates recent advances in the research on structural transformation. We begin by presenting the stylized facts of structural transformation across time and space. We then develop a multi-sector extension of the one-sector growth model that encompasses the main existing theories of structural transformation. We argue that this multi-sector model serves as a natural benchmark to study structural transformation and that it is able to account for many salient features of structural transformation. We also argue that this multi-sector model delivers new and sharper insights for understanding economic development, regional income convergence, aggregate productivity trends, hours worked, business cycles, wage inequality, and greenhouse gas emissions. We conclude by suggesting several directions for future research on structural transformation.
KW - Approximate balanced growth
KW - Multi-sector growth model
KW - Structural transformation
KW - Stylized facts
UR - http://www.scopus.com/inward/record.url?scp=84888991621&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84888991621&partnerID=8YFLogxK
U2 - 10.1016/B978-0-444-53540-5.00006-9
DO - 10.1016/B978-0-444-53540-5.00006-9
M3 - Chapter
AN - SCOPUS:84888991621
T3 - Handbook of Economic Growth
SP - 855
EP - 941
BT - Handbook of Economic Growth
PB - Elsevier B.V.
ER -