Structural change in a multi-sector model of growth

Ngai, L. Rachel and Pissarides, Christopher (2007) Structural change in a multi-sector model of growth. American economic review, 97 (1). pp. 429-443. ISSN 0002-8282

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Abstract

We study a multisector model of growth with differences in TFP growth rates across sectors and derive sufficient conditions for the coexistence of structural change, characterized by sectoral labor reallocation and balanced aggregate growth. The conditions are weak restrictions on the utility and production functions. Along the balanced growth path, labor employed in the production of consumption goods gradually moves to the sector with the lowest TFP growth rate, until in the limit it is the only sector with nontrivial employment of this kind. The employment shares of intermediate and capital goods remain constant during the reallocation process.

Item Type:	Article
Official URL:	http://www.aeaweb.org/aer/
Additional Information:	© 2007 American Economic Association
Uncontrolled Keywords:	multi-sector growth, sectoral employment, structural change and unbalanced growth
Library of Congress subject classification:	H Social Sciences > HB Economic Theory
Journal of Economic Literature Classification System:	O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
Sets:	Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP) Departments > Economics
Rights:	http://www.lse.ac.uk/library/rights/LSERO.htm
URL:	http://eprints.lse.ac.uk/4468/

Available Versions of this Item

• Balanced growth with structural change. (deposited 01 Feb 2008)
  • Structural change in a multi-sector model of growth. (deposited 27 Feb 2008)
    • Structural change in a multi-sector model of growth. (deposited 21 Apr 2008 10:17)
      • Structural change in a multi-sector model of growth. (deposited 23 Apr 2008 11:26) [Currently Displayed]

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