Unbalanced growth

Kala Krishna () and César Pérez

Canadian Journal of Economics, 2005, vol. 38, issue 3, 832-851

Abstract: We study a model designed to understand the concept of unbalanced growth. We define leading sectors to be those that raise the profits from industrialization for other sectors the most. We identify the leading sectors and show that subsidizing them in sequence will raise welfare if the future is not discounted too strongly.

Date: 2005
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