scholarly journals Structural change in OECD comparative advantage

2013 ◽  
Vol 22 (6) ◽  
pp. 817-838 ◽  
Author(s):  
Steven Brakman ◽  
Robert Inklaar ◽  
Charles Van Marrewijk
Keyword(s):  
Structural Change ◽  
Comparative Advantage

Introduction: The Art of Engineering Prosperity in Unlikely Places

2019 ◽  
pp. 1-19
Author(s):  
Justin Yifu Lin ◽  
Célestin Monga
Keyword(s):  
Eighteenth Century ◽  
Structural Change ◽  
Comparative Advantage ◽  
Low Income ◽  
Economic History ◽  
Poverty Reduction ◽  
Technological Development ◽  
Methodological Approach ◽  
Policy Practice ◽  
Globalized World

This chapter provides a methodological approach that draws lessons and insights from economic history and theory and uses empirics from economic analysis and policy practice. It starts with an observation of the increasingly globalized world economy in which technological development allows the use of factors of production in locations that maximize returns and utility, and countries gain mutually by trading with each other if their strategies focus on revealed and latent comparative advantage. By following carefully selected lead countries, latecomers can emulate the leader–follower, flying-geese pattern that has well served economies since the eighteenth century. The prospects for sustained and inclusive growth are even greater for low-income economies that enjoy the benefits of backwardness. The chapter advocates implementing viable strategies to capture new opportunities for industrialization, which can enable low-income economies to set forth on a dynamic path of structural change and lead to poverty reduction and prosperity.

Economic Reform and Structural Change

2019 ◽  
pp. 530-548
Author(s):  
Barry Naughton
Keyword(s):  
Structural Change ◽  
Economic Reform ◽  
Comparative Advantage ◽  
Market Transition ◽  
Service Economy ◽  
Policy Makers ◽  
New Era ◽  
The Relationship ◽  
Second Period

This chapter examines China’s experience with structural change during three distinct periods of economic reform and growth: 1978–1995, 1995 through to about 2010, and 2010 to present. In each case, the chapter finds that the pattern of structural change is related to the choices made by policy makers with respect to reform and market transition. The first period saw a shift towards a more labour-intensive output basket, a structure that was more in line with China’s underlying comparative advantage, while the second period witnessed a move ‘upstream’ toward more capital and skill-intensive industries. Since 2010, China has begun to move toward a service economy and embarked on a new era of structural change. Each of these periods offers specific ‘lessons’ about the relationship between policy and structural change. The chapter concludes with a discussion of these lessons and a number of generalizations that apply to China’s experience as a whole.

Measuring Structural Change

2019 ◽  
pp. 348-362
Author(s):  
Célestin Monga ◽  
Samuel Standaert
Keyword(s):  
Structural Change ◽  
Structural Transformation ◽  
Comparative Advantage ◽  
Structural Characteristics ◽  
New Approach ◽  
Outcome Index ◽  
The Individual ◽  
Traditional Approaches ◽  
New Structural Economics

This chapter examines the specific problems that arise when creating an index of structural change and development, and offers recommendations to address them. It first considers the four steps to composing a policy index and an outcome index: define what the index is trying to measure; identify suitable indicators that track (parts of) the definition decided upon in the first step; normalize the individual indicators and aggregate them into the final index; and analyse the index and report on the results. The chapter then discusses traditional approaches to measuring structural transformation, along with their shortcomings, before introducing a new approach. Insights from New Structural Economics are highlighted, including the argument that the desired structural characteristics of countries are determined by their comparative advantage, which in turn depends on their level of development.

Economic Transformation in a Comparative Perspective

2018 ◽  
Author(s):  
Hazel Gray
Keyword(s):  
Economic Theory ◽  
Economic Policy ◽  
Structural Change ◽  
Comparative Advantage ◽  
State Intervention ◽  
Economic Transformation ◽  
Comparative Perspective ◽  
Market Forces ◽  
Rapid Rate ◽  
Proximate Causes

This chapter sets out the main characteristics of economic transformation in Tanzania and Vietnam from 1980 to 2010. It highlights macroeconomic features and explains the key differences in their experience of structural change that occurred as both countries adopted forms of market liberalization. The chapter explains the proximate causes of economic transformation and examines how orthodox economics explains the deeper determinants of economic transformation, related to comparative advantage. The chapter argues that these approaches are insufficient because they cannot account for the distinct roles that the state played in each country. Contrary to orthodox economic theory, Vietnamese economic policy retained a much greater level of state intervention than was the case in Tanzania, while achieving a more rapid rate of industrialization. Therefore this book undertakes an analysis of the interplay between market forces, institutions, and power that shape the different paths of economic transformation under liberalization.

scholarly journals Varieties of Common Sense

2020 ◽  
pp. 46-72
Author(s):  
Christopher Cramer ◽  
John Sender ◽  
Arkebe Oqubay
Keyword(s):  
Structural Change ◽  
Comparative Advantage ◽  
Common Sense ◽  
Development Economics ◽  
Terms Of Trade ◽  
Conventional Wisdom ◽  
Inclusive Development ◽  
Neoclassical Economics ◽  
Competitive Markets ◽  
Trade Theory

Policy officials are often influenced by two broad varieties of conventional wisdom: the set of ideas broadly associated with neoclassical economics; and those ideas flowing from third worldist, anti-imperialist, and structuralist development economics. We show how these apparently opposing perspectives often have a surprising amount in common. Reflexes of ‘impossibilism’ and ‘naive optimism’ are often shared across an ideological divide. Thus, pessimism in orthodox trade theory suggests no African economy can hope to accelerate structural change by defying the signals of comparative advantage; and pessimism in structuralist trade arguments claims limited gains from exporting, especially from exporting primary commodities while the terms of trade are declining. Both forms of pessimism can easily switch to naive optimism when they imagine the ease of rapid and ‘inclusive’ development. But the switch requires that unrealistic conditions are put in place: perfectly competitive markets or idealized South–South cooperation.

Revealed Comparative Advantage Indexes for Regions of the United States

2005 ◽  
Vol 5 (1) ◽  
pp. 1850027 ◽  
Author(s):  
Don P. Clark ◽  
W. Charles Sawyer ◽  
Richard L Sprinkle
Keyword(s):  
United States ◽  
Structural Change ◽  
Comparative Advantage ◽  
The United States ◽  
Export Promotion ◽  
Production Data ◽  
Revealed Comparative Advantage ◽  
Dynamic Changes ◽  
Trade Performance ◽  
Promotion Strategies

This study identifies the pattern of comparative advantage for U.S. regions from actual trade performance as indicated by the industry composition of exports. Revealed comparative advantage patterns are also determined using production data. Dynamic changes in comparative advantage patterns are identified using a methodology developed by Kreinin and Plummer (1994a). Comparative advantage patterns and the degree of structural change in exports vary considerably across regions. Results will assist U.S. regions and states in formulating effective export promotion strategies.

Sign in / Sign up

Export Citation Format

Share Document