Engel's Law in the Global Economy: Demand-Induced Patterns of Structural Change, Innovation and Trade

2017 ◽  
Author(s):  
Kiminori Matsuyama
Keyword(s):  
Structural Change ◽  
Global Economy

The Global Economy: R&D, Structural Change and Employment Shifts

1998 ◽  
pp. 103-140
Author(s):  
Paul J. J. Welfens ◽  
David B. Audretsch ◽  
John T. Addison ◽  
Hariolf Grupp
Keyword(s):  
Structural Change ◽  
Global Economy

Trade Liberalization, Structural Change, and Economic Growth

2021 ◽  
pp. 407-441
Author(s):  
Michael Landesmann ◽  
Neil Foster-McGregor
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Trade Liberalization ◽  
Productivity Growth ◽  
Global Economy ◽  
Adam Smith ◽  
Trade Theory ◽  
New Trade Theory ◽  
The Impact ◽  
The Relationship

Trade and the integration of countries into the global economy is one of the main forces shaping the structural composition of economies, an effect which in turn is expected to impact upon productivity and growth. Structural change can be restrained or reinforced by international trade. This chapter reviews the theory on the relationship between trade and trade liberalization and both structural change and growth, from the contributions of Adam Smith to the more recent new new trade theory beginning with the work of Melitz. The chapter further discusses the existing empirical evidence on the relationship between trade and structural change, before concluding by presenting evidence on the impact of trade liberalization on productivity growth for a broad sample of countries, further decomposing the effect into an effect due to structural change and an effect due to within sector productivity developments.

Structural Change and Cooperation in the Global Economy

2001 ◽  
Vol 32 (1) ◽  
pp. 207-209 ◽  
Author(s):  
Steven Globerman
Keyword(s):  
Structural Change ◽  
Global Economy

Engel's Law in the Global Economy: Demand‐Induced Patterns of Structural Change, Innovation, and Trade

Econometrica ◽  
2019 ◽  
Vol 87 (2) ◽  
pp. 497-528 ◽  
Author(s):  
Kiminori Matsuyama
Keyword(s):  
Structural Change ◽  
Global Economy ◽  
Income Elasticity ◽  
Value Added ◽  
Productivity Change ◽  
Poor Countries ◽  
Product Cycles ◽  
Directed Technical Change ◽  
Nonhomothetic Preferences ◽  
Demand Composition

Endogenous demand composition across sectors due to income elasticity differences, or Engel's Law for brevity, affects (i) sectoral compositions in employment and in value‐added, (ii) variations in innovation rates and in productivity change across sectors, (iii) intersectoral patterns of trade across countries, and (iv) product cycles from rich to poor countries. Using a two‐country model of directed technical change with a continuum of sectors under nonhomothetic preferences, which is rich enough to capture all these effects as well as their interactions, this paper offers a unifying perspective on how economic growth and globalization affect the patterns of structural change, innovation, and trade across countries and across sectors in the presence of Engel's Law. Among the main messages is that globalization amplifies, instead of reducing, the power of endogenous domestic demand composition differences as a driver of structural change.

A Structural View of Tourism Growth

2003 ◽  
Vol 9 (1) ◽  
pp. 77-93 ◽  
Author(s):  
Egon Smeral
Keyword(s):  
Structural Change ◽  
Global Economy ◽  
Durable Goods ◽  
Income Elasticity ◽  
Tourism Industry ◽  
Growth Effect ◽  
Structural Factors ◽  
Total Employment ◽  
Demand Effect ◽  
Tourism Services

Structural factors are important when it comes to explaining tourism growth. In this connection, crucial roles are played by structural change in demand and differentials between productivity in tourism and in manufacturing. The demand factor stimulates the rise of tourism demand and explains why tourism grows faster than the global economy as such or why the income elasticity is above 1: tourism is a luxury good, and structural change in demand is a key factor in analysing its development. Once saturation has been achieved in basic needs and durable goods, a growing economy has more money left to spend on, first, leisure and tourism services and, secondly, knowledge-based goods and services. In contrast to manufacturing, opportunities to increase productivity are limited in the tourism industry. Because there are fewer options for rationalization, tourism services become more expensive in the long term than manufactured goods or other services, and this weakens the demand-triggered growth effect. Nevertheless, in sum the demand effect is stronger than the productivity disadvantages. As a side-effect of the productivity disadvantages and the demand effect, employment grows as a share of total employment in the hotel and restaurant industry, the core segments of the tourism business.

scholarly journals Progressive structural change in the Central American integration process

2020 ◽  
pp. 5-34
Author(s):  
Jorge Mario Martínez–Piva
Keyword(s):  
Structural Change ◽  
Intellectual History ◽  
Regional Integration ◽  
Global Economy ◽  
Import Substitution ◽  
Central American ◽  
Economic Policies ◽  
Development Models ◽  
International Environment ◽  
History Of

The intellectual history of ECLAC has been one of “continuity with changes”. These changes allowed adjusting policy proposals and action plans to the ever–changing international environment. ECLAC has proposed to the Central American region mainly three development models in the last 70 years: the first one, to overcome the agro–export phase based on primary products (“outward development”) ECLAC proposed a process of industrialization and urbanization (“inward development” or “industrialization by import substitution”; the second one, was the integration with the global economy along with strengthening regional integration (“open regionalism”); and the third, more recently, a productive transformation with emphasis in equality (“progressive structural change”). The objective of this paper is to identify a set of economic policies that could operationalize recent ECLAC’s development proposal called “progressive structural change”. The progressive structural change groups strong ideas based on the need to renew productive policy, promote sustainable development and place equality at the center of public policy actions.

Cities in a Global Economy: Structural Change and Policy Reactions

Urban Studies ◽  
1997 ◽  
Vol 34 (10) ◽  
pp. 1693-1703 ◽  
Author(s):  
Nigel Harris
Keyword(s):  
Structural Change ◽  
Global Economy

scholarly journals A Multi-Country Trade and Tourism with Endogenous Capital and Knowledge

2017 ◽  
Vol 8 (1) ◽  
pp. 71-91 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Structural Change ◽  
Growth Model ◽  
Global Economy ◽  
Dynamic Interaction ◽  
Learning By Doing ◽  
Utilization Efficiency ◽  
Knowledge Accumulation ◽  
Tourist Flows

AbstractBackground: The study models a dynamic interaction among economic growth, structural change, knowledge accumulation, international trade and tourist flows. Objective: The purpose of this study is to introduce endogenous knowledge into a multi-country growth model with trade and tourism proposed by Zhang. The study models a dynamic interaction among economic growth, structural change, knowledge accumulation, international trade and tourist flows. Methods/Approach: The model is based on Arrow’s learning by doing, the Solow one-sector growth model, the Oniki-Uzawa neoclassical trade model, and the Uzawa two-sector growth model. We first build the multi-country neoclassical growth model of endogenous knowledge with international tourism. Then we show that we can follow the motion of the J - country world economy with J + 1 differential equations. Results: We simulate the motion of the three-country global economy. We carry out a comparative dynamic analysis by simulation with regard to the knowledge utilization efficiency, the efficiency of learning by doing, the propensity to save, the propensity to tour other countries, and the population. Conclusions: The global economy has a unique equilibrium.

scholarly journals STRUCTURAL CHANGES OF ECONOMIES: LITHUANIA IN THE GLOBAL CONTEXT

2014 ◽  
Vol 20 (2) ◽  
pp. 353-370 ◽  
Author(s):  
Gitana Dudzevičiūtė ◽  
Alminas Mačiulis ◽  
Manuela Tvaronavičienė
Keyword(s):  
Structural Change ◽  
Global Economy ◽  
Structural Changes ◽  
Point Of View ◽  
Policy Implications ◽  
Global Context ◽  
Sector Model ◽  
Agriculture Industry ◽  
Economic Statistics ◽  
Depth Analysis

Structural economic change theory focuses on the process through which economic structures have been transformed from traditional agriculture economy to more modern and industrially diverse manufacturing and service ones. The purpose of this paper is to detect the pattern of structural changes of the Lithuanian economy and to evaluate it in the global context. Structural economic statistics of the countries provide a view of a particular year delivered by indicator of the level of output in a considered sector of selected country’s economy. Research methodology is based on the classic three-sector model, which involves structural changes’ assessment methods and comparative analysis of statistical data on economic structures. The main findings reveal peculiarities of the structural change tendencies of the Lithuanian economy in the global context. First of all, the economies of selected countries are being analyzed from the point of view of three-sectoral divisions, such as agriculture, industry and services; the authors highlight the main tendencies of global economy taken by regions. After further in-depth analysis of the Lithuanian economic structural changes’ assessment in the context of the other countries (regions) has been carried out and new evidence on patterns of structural change has been provided, concluding remarks have been formulated. Authors provide insights about peculiarities of Lithuanian economy’s structural changes, which could potentially lead to respective policy implications, ultimately aiming acceleration of economic development.

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