Growth and Structural Transformation

Richard Rogerson, Berthold Herrendorf and Akos Valentinyi ()

No 9370, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: 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, and wage inequality. We conclude by suggesting several directions for future research on structural transformation.

Keywords: Approximate balanced growth; Multi-sector growth model; Structural transformation; Stylized facts (search for similar items in EconPapers)
JEL-codes: O11 O14 O41 (search for similar items in EconPapers)
Date: 2013-03
New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (85)

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Related works:
Chapter: Growth and Structural Transformation (2014)
Working Paper: Growth and Structural Transformation (2013)
Working Paper: Growth and Structural Transformation (2007)
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