Structural Change as a Modernization Process

2021 ◽  
pp. 217-239
Author(s):  
Alejandro Lavopa ◽  
Adam Szirmai
Keyword(s):  
Economic Development ◽  
Structural Change ◽  
Labour Force ◽  
Two Dimensions ◽  
Middle Income ◽  
Employment Share ◽  
Catch Up ◽  
Modernization Process ◽  
Relative Productivity ◽  
The Relationship

This chapter analyses economic development through the lens of a newly developed index: the structural modernization index. This index combines two dimensions that have been widely invoked as prime drivers of economic development namely, structural change and technological catch-up. For each country, the index calculates the productivity gap with respect to the world frontier in activities that typically represent the modern sector of the economy and weights this relative productivity by the employment share of those activities in the total labour force. The index is calculated for a sample of 115 countries over the period 1960–2014. It is used to explore the relationship between structural modernization and the ability to escape poverty and middle-income traps.

Structural Change, Economic Development, and the Labour Market

2021 ◽  
pp. 577-595
Author(s):  
Önder Nomaler ◽  
Bart Verspagen ◽  
Adriaan van Zon
Keyword(s):  
Economic Development ◽  
Structural Change ◽  
Income Inequality ◽  
Income Distribution ◽  
Technological Change ◽  
Labour Market ◽  
Skill Premium ◽  
Skilled Labour ◽  
The Relationship ◽  
Specific Country

This chapter addresses the relationship between structural change and the income distribution. It raises the question of whether structural change increases or decreases income inequality. The chapter presents a multi-sectoral model in the so-called canonical modelling tradition. In this model the distributional outcomes depend on the mix of the labour supply in different technology classes and skill biases in technological change. Whether structural change has an effect depends on the specific country. When it does have an effect, it mainly benefits high-skilled labour. The skill premium for high-skilled labour thus contributes to increased income inequality. Both the relative supply of skills and skill-based technological change tend to increase income inequality, though not in all countries.

Economic Complexity Perspectives on Structural Change

2021 ◽  
pp. 188-214
Author(s):  
Clovis Freire
Keyword(s):  
Economic Development ◽  
Structural Change ◽  
Network Theory ◽  
Recent Literature ◽  
Systems Dynamics ◽  
Economic Diversification ◽  
Knowledge And Skills ◽  
Economic Complexity ◽  
International Specialization ◽  
The Relationship

Recent collaborations between economists and physicists have cleared the way for innovative research on the relationship between economic diversification, international specialization, trade and economic development. The resulting literature rests on the idea that the products that countries produce provide information about the non-tradable productive capabilities that countries have. These capabilities include infrastructure, institutions, regulations, and specific productive knowledge and skills. The greater a country’s capabilities, the greater the variety of goods a country can produce. Therefore, economic diversification is considered a quintessential characteristic of economic development. Within this framework a diversified economy is considered to be a complex one. This complexity is not simply due to the mere number of productive sectors but also to the interconnections that arise because of the shared capabilities that they require for production. To study these interconnections, the recent literature proposes and uses tools, methods, and measures of network theory and systems dynamics. This chapter summarizes this literature and links it to important debates on structural change.

The Relevance of Science in Development

2014 ◽  
pp. 1-17 ◽  
Author(s):  
Klaus Jaffe
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
National Income ◽  
Scientific Productivity ◽  
Economic Policies ◽  
Middle Income ◽  
Developed Economies ◽  
Middle Income Countries ◽  
Wealth Of Nations ◽  
Relative Productivity

Scientific knowledge and technical expertise promote the wealth of nations. The traditional view is that science allows the expansion of technology, which, in turn, promotes economic development. This chapter shows that: 1) the scientific productivity of a country correlates more strongly with gross national income per capita than its technological sophistication; 2) science is important for economic growth among developed economies, whereas technical complexity is more important for the economic development of poorer countries; 3) scientific productivity of countries correlates more strongly with present and future wealth than indices reflecting its financial, social, economic, or technological sophistication; and 4) middle-income countries with higher relative productivity in basic sciences such as physics and chemistry have the highest economic growth in the following five years compared to countries with a higher relative productivity in applied sciences. No simple direct causal relationship between scientific productivity and economic growth could be detected. The results are best explained by assuming that science favors economic development by providing society with a more rational atmosphere, allowing the implementation of sound policies and institutions, and/or that rational societies with successful economic policies are also the ones giving priority to basic natural sciences.

Development, discrimination, and domestic terrorism: Looking beyond a linear relationship

2015 ◽  
Vol 34 (6) ◽  
pp. 618-639 ◽  
Author(s):  
Sambuddha Ghatak ◽  
Aaron Gold
Keyword(s):  
Economic Development ◽  
Linear Relationship ◽  
Relative Deprivation ◽  
Developed Countries ◽  
Domestic Terrorism ◽  
Curvilinear Relationship ◽  
Least Developed Countries ◽  
Middle Income ◽  
Middle Income Countries ◽  
The Relationship

This study relates economic development to one of the well-observed predictors of domestic terrorism—minority discrimination—and revisits the relationship between terrorism and economic development. We argue that terrorism may be a rational choice when minorities’ exclusion from political power and relative deprivation from public goods increases and the unsettling forces in the initial phases of economic development provide aggrieved people with opportunities for mobilization. We find that economic development has a curvilinear relationship with terrorism. Highly developed countries are less likely to experience domestic terrorism than less-developed ones and the least developed countries have few targets. However, both rich and middle-income countries are vulnerable to domestic terrorism in the presence of minority discrimination.

Cooperation Between Ukraine and the EU Towards Innovation-Driven Economic Development

2020 ◽  
pp. 243-269
Author(s):  
Lyubov Artemenko
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
International Cooperation ◽  
Labour Force ◽  
Value Added ◽  
Framework Programme ◽  
Cheap Labour ◽  
Catch Up ◽  
Energy Intensive Industries ◽  
The Eu

Innovation underpins productivity and lies at the heart of economic growth. Ukraine is far from the technological frontier. Its economy depends on energy-intensive industries, producing low value-added products, and using a relatively cheap labour force. As international cooperation is an important proxy of country's technological catch-up, this chapter aims to study ways of cooperation between Ukraine and the EU towards innovation-driven economic development. The chapter provides analysis of Ukraine's participation in EU 7th Framework programme and HORIZON2020. Special emphasis is assigned to the ability of Ukrainian participants to acquire, assimilate, transform, and exploit gained knowledge.

Personal Histories and Social Restructuring: The Transformation of a Peasant Society

1996 ◽  
Vol 44 (1) ◽  
pp. 35-57
Author(s):  
Beryl Nicholson
Keyword(s):  
Structural Change ◽  
Census Data ◽  
Labour Force ◽  
Second World War ◽  
Two Dimensions ◽  
Cross Sectional ◽  
Peasant Society ◽  
Personal Histories ◽  
Social Restructuring ◽  
Second World

Using the capacity of linked census data to combine two levels, individual and aggregate, and two dimensions, longitudinal and cross-sectional, the process of structural change is explored to reveal aspects of change which are usually hidden. North Troms, in North Norway, which still had a peasant economy at the end of the Second World War is used as an example. The trajectories of those economically active in 1960 and 1970 are disentangled then reassembled to show how they combined as structural change. Only a minority of personal histories paralleled the change in society as a whole. Much more structural change resulted from succession of cohorts leaving and entering the labour force. By joining the study of individuals to that of structures, it is possible to see how change occurs in the spaces between people, out of the effects of many contradictions.

scholarly journals Socio-economic development, income differentiation and religious people: an empirical analysis of the relationship

2020 ◽  
Keyword(s):  
Cluster Analysis ◽  
Economic Development ◽  
Income Distribution ◽  
Empirical Analysis ◽  
Low Income ◽  
Gini Coefficient ◽  
Middle Income ◽  
Socio Economic Development ◽  
High Level ◽  
The Relationship

The paper studies issues related to the relationship between indicators of socio-economic development, income differentiation and religiosity of the population in the country. Based on the assumption that the religiosity of the population can be a factor that has a significant impact on socio-economic development and the inequality of income distribution in society, this hypothesis is tested using correlation and cluster analysis methods based on empirical analysis. The results of a) a correlation analysis of indicators of the inequality of the income distribution of the country, its socio-economic development and the level of religiosity of the population are presented; b) analysis of the relationship between the Gini coefficient and the number of believers; c) clustering of sample objects (countries) by indicators of socio-economic development, income distribution and religiosity of the population. The analysis was carried out on a sample of 75 countries and indicators: per capita GDP, human development index (HDI), income differentiation (Gini coefficient), the number of religious population (in %). The results confirm the existence of relationships between these indicators. It is revealed that the nature of the relationship between the socio-economic development of the country and the level of religiosity of the population is non-linear, which can be presented in a parabolic form. An analysis conducted by groups of countries by income level (High income, Upper middle income, Lower middle income, Low income) showed that the closest positive relationship between the Gini index and religiosity of the population is observed in the countries of Lower middle income. To describe the diversity of combinations of indicators of socio-economic development, income differentiation and religiosity of the population, a cluster analysis was carried out on the basis of all 4 indicators. 3 clusters of countries were identified, of which groups with opposite values of attributes: countries with a high level of religiosity and income distribution inequality and low development rates; countries with low rates of inequality and religiosity and high levels of development. The intermediate cluster has indicator values that are closer to the first group.

The Relationship Between the Liberal Ethos and Quality of Life

2000 ◽  
Vol 33 (8) ◽  
pp. 1049-1078 ◽  
Author(s):  
KISANGANI N. F. EMIZET
Keyword(s):  
Quality Of Life ◽  
Economic Development ◽  
Middle East ◽  
Market Economy ◽  
Positive Influence ◽  
Sub Saharan Africa ◽  
Middle Income ◽  
Sub Saharan ◽  
The Relationship

This research examines the positive influence of democracy and economic liberalism on citizens' quality of life (QOL). The statistical analysis relies on extreme-bounds analysis, the Tobit-maximum likelihood estimator, and robust two-stage least squares to test this hypothesis. The relationship between democracy and QOL is a parabolic inverted U-shaped curve, so that democracy first enhances QOL and over time it hampers it. On the other hand, QOL strengthens democracy. QOL suffers from a market economy in middle-income countries. Openness to trade enhances QOL everywhere but sub-Saharan Africa and the Middle East. A market economy consolidates democracy everywhere else but sub-Saharan Africa. Openness enhances democracy around the globe, except in Latin America and the Middle East. Economic development and QOL exhibit a reciprocal normal U-shaped curve, whereas democracy and economic development are linearly dependent. These contradictory results cast some doubt on the pursuit of both democracy and a liberal economy in fostering development. The current pursuit of the liberal ethos can be destructive, and it is time to modify our vision of the future.

scholarly journals Structural Change Out of Agriculture: Labor Push versus Labor Pull

2011 ◽  
Vol 3 (3) ◽  
pp. 127-158 ◽  
Author(s):  
Francisco Alvarez-Cuadrado ◽  
Markus Poschke
Keyword(s):  
Nineteenth Century ◽  
Economic Development ◽  
Structural Change ◽  
Recent Literature ◽  
Agricultural Technology ◽  
Industrialized Countries ◽  
Agricultural Employment ◽  
Employment Share ◽  
Using Data ◽  
Agriculture Labor

A declining agricultural employment share is a key feature of economic development. Its main drivers are: improvements in agricultural technology combined with Engel's law release resources from agriculture (“labor push”), and improvements in industrial tech nology attract labor out of agriculture (“labor pull”). We present a model with both channels and evaluate the importance using data on 12 industrialized countries since the nineteenth century. Results suggest that the “pull” channel dominated until 1920 and the “push” channel dominated after 1960. The “pull” channel mattered more in countries in early stages of the structural transformation. This contrasts with modeling choices in recent literature. (JEL E23, N10, N53, O10, O47).

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