Growth and Structural Transformation

Berthold Herrendorf, Richard Rogerson and Akos Valentinyi ()

Chapter 06 in Handbook of Economic Growth, 2014, vol. 2, pp 855-941 from Elsevier

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, wage inequality, and greenhouse gas emissions. 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 O4 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (436)

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Related works:
Working Paper: Growth and Structural Transformation (2013)
Working Paper: Growth and Structural Transformation (2013)
Working Paper: Growth and Structural Transformation (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:grochp:2-855

DOI: 10.1016/B978-0-444-53540-5.00006-9

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