Economic Growth and Structural Change ? A Synthesis of the Walrasian General Equilibrium, Ricardian Distribution and Neoclassical Growth Theories

2017 ◽  
Vol 5 (1) ◽  
pp. 17-36 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
General Equilibrium ◽  
Neoclassical Growth

scholarly journals Structural Transformation to Manufacturing and Services: What Role for Trade?

2019 ◽  
Vol 36 (2) ◽  
pp. 32-71 ◽  
Author(s):  
Kym Anderson ◽  
Sundar Ponnusamy
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Gross Domestic Product ◽  
General Equilibrium ◽  
Structural Transformation ◽  
Equilibrium Model ◽  
National Policy ◽  
Annual Data ◽  
Declining Industries ◽  
Different Types

Understanding how and why economies structurally transform as they grow is crucial for making sound national policy decisions. Typically, analysts who study this issue focus on sectoral shares of gross domestic product and employment. This paper extends those studies to include exports, including exports of services. It also considers mining, in addition to agriculture and manufacturing, and recognizes that some of the products of these four sectors are nontradable. The section on theory presents a general equilibrium model that provides hypotheses about structural change in different types of economies as they grow. These are then tested econometrically with annual data for the period 1991–2014 for a sample of 117 countries. The results point to the futility of adopting protective policies aimed at slowing deagriculturalization and subsequent deindustrialization in terms of sectoral shares, since those trends inevitably will accompany economic growth. Fortuitously, governments now have more efficient and equitable ways of supporting adjustments needed by people who choose or are forced to leave declining industries.

scholarly journals Economic Growth and Inequality with Tourism in an Integrated Walrasian-General Equilibrium and Neoclassical-Growth Theory

2018 ◽  
Vol 21 (1) ◽  
pp. 17-36
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
General Equilibrium ◽  
Open Economy ◽  
Nonlinear Differential Equations ◽  
Small Open Economy ◽  
Growth Theory ◽  
Traded Goods ◽  
The Rich ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

Abstract This paper studies dynamic interdependence between economic growth, tourism, and inequalities in income and wealth in a small open economy. We build the dynamic model in an integrated Walrasian-general equilibrium and neoclassical-growth theory for a small open economy with multiple sectors and heterogeneous households in a perfectly competitive economy. The economy consists of one service sector which supplies non-traded services and one industrial sector which produces traded goods. We treat wealth accumulation and land distribution between housing and supply of services as endogenous variables. We show that the motion of the economy with J types of households is given by J nonlinear differential equations. We simulate the motion of the system with three groups of households. We also conduct comparative dynamic analysis with regards to the rate of interest, the price elasticity of tourism, the global economic condition, and the rich class’ human capital, and the rich class’ propensity to consume housing.

scholarly journals Banking and Money in an Extended Solow-Uzawa’s Neoclassical Growth Model

2021 ◽  
Vol 16 (1) ◽  
pp. 221-243
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Economic System ◽  
Growth Model ◽  
Banking Sector ◽  
Stable Equilibrium Point ◽  
Dynamic Interactions ◽  
Modeling Behavior ◽  
Neoclassical Growth ◽  
Competitive Economy

Abstract This study deals with interactions between economic growth and structural change with banking. The study is influenced by the growth model of money and banking by Chang et al. (2007). It deviates from Chang et al.’ model with regard to the monetary authority behavior, economic structure, and modeling behavior of household. The model deals with dynamic interactions between money, banking, economic structural change and growth in a perfectly competitive economy. The economic system consists of one capital goods sector, one consumer goods sector, and one banking sector. The two goods sectors are based on the Solow-Uzawa growth model. The motion is described by a set of differential equations. For illustration, we simulate the motion of the economic system. We identify the existence of a stable equilibrium point. We carry out comparative dynamic analysis. The comparative analyses provide some insights into the complexity of economic growth with banking.

What Did The Study of The Soviet Economy Contribute to Mainstream Economics?

2010 ◽  
pp. 39-55
Author(s):  
M. Ellman
Keyword(s):  
Economic Growth ◽  
Property Rights ◽  
General Equilibrium ◽  
Informal Sector ◽  
Institutional Economics ◽  
Soviet Economy ◽  
General Equilibrium Theory ◽  
Mainstream Economics ◽  
Universal Applicability ◽  
Soviet Experience

This article is an overview of the contribution made by economic Sovietology to mainstream economics. The long debate about the universal applicability of mainstream economics is reconsidered in the light of the Soviet experience. Information is provided on the contribution of the study of the Soviet economy to fields as diverse as the measurement of economic growth, institutional economics, economic administration, the economics of property rights, the economics of the informal sector, the economics of famines, the Austrian critique of general equilibrium theory, and incentives.

The management of structural adjustment and macroeconomic reform in Vietnam

1998 ◽  
Vol 17 (1) ◽  
pp. 29-37
Author(s):  
Keith Griffin
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Structural Adjustment ◽  
National Accounts ◽  
Policy Reforms ◽  
Rapid Economic Growth ◽  
Actual Output ◽  
Present Decade ◽  
Official Data ◽  
Low Rate

Vietnam has been remarkably successful in managing structural adjustment and macroeconomic reform. As a result, it has achieved very rapid economic growth during the present decade without, apparently, a substantial increase in inequality. All sectors of the economy have grown rapidly and yet there has been dramatic structural change. This growth and structural change, according to official data, have occurred despite a relatively low rate of investment. Our analysis suggests, however, that savings and investment have been understated, that actual output is higher than the national accounts data indicate and that growth is even faster than the official figures suggest. These results are a consequence of the nature and sequencing of the policy reforms that were introduced from the 1980s onwards.

THE ROLE OF EDUCATED LEADERS IN ECONOMIC GROWTH AND DEVELOPMENT: EVIDENCE FROM CENTRAL AFRICAN REPUBLIC AND SINGAPORE

2018 ◽  
Vol 65 (01) ◽  
pp. 81-102
Author(s):  
OLUWOLE OWOYE ◽  
OLUGBENGA A. ONAFOWORA
Keyword(s):  
Economic Growth ◽  
Growth And Development ◽  
Central African Republic ◽  
Economic Growth And Development ◽  
Highly Educated ◽  
Educational Attainments ◽  
Fundamental Causes ◽  
The Mean ◽  
Neoclassical Growth

This paper postulates that highly educated leaders matter in economic growth and development and that this is one of the fundamental causes of the differences in income between countries. To verify this assertion, we examine Central African Republic and Singapore within the neoclassical growth model that incorporates educational attainments of leaders as the functionally relevant explanatory variable. We found the mean years of schooling of educated leaders to be statistically and significantly different in both countries, but more importantly, educational attainments of leaders have a positive and statistically significant effect on economic growth in Singapore, but negative in Central African Republic.

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