Endogenous sector-biased technical change and perpetual and transient structural change. (English) Zbl 1408.91128
Summary: This paper provides a new definition of structural change and then categorizes such changes into two types. Transient structural change is related to the short-term adjustment of sectoral labor employment, while perpetual structural change concerns the long-run trends of labor reallocation among sectors. If we focus on supply-side reasons, we find that the one and only fundamental driving force of perpetual structural change is sector-biased technical change. We also investigate the structural parameters of the model that determine the direction of sector-biased technical change.
MSC:
| 91B40 | Labor market, contracts (MSC2010) |
| 90B70 | Theory of organizations, manpower planning in operations research |
Keywords:
aggregate balanced growth; biased technology; non-balanced sectoral growth; R&D resources; structural changeReferences:
| [1] | Acemoglu, D, Why do new technologies complement skills? directed technical change and wage inequality, Q J Econ, 113, 1055-1089, (1998) · Zbl 0935.91027 · doi:10.1162/003355398555838 |
| [2] | Acemoglu, D, Directed technical change, Rev Econ Stud, 69, 781-809, (2002) · Zbl 1047.91048 · doi:10.1111/1467-937X.00226 |
| [3] | Acemoglu D, Guerrieri V (2006) Capital deepening and non-balanced economic growth. NBER working paper no. W12475. http://www.nber.org/papers/w12475. Accessed 25 Sept 2016 · Zbl 1041.91043 |
| [4] | Acemoglu, D; Guerrieri, V, Capital deepening and non-balanced economic growth, J Polit Econ, 116, 467-498, (2008) · doi:10.1086/589523 |
| [5] | Acemoglu, D; Zilibotti, F, Productivity differences, Q J Econ, 116, 563-606, (2001) · Zbl 1017.91064 · doi:10.1162/00335530151144104 |
| [6] | Arrow, KJ, The economic implications of learning by doing, Rev Econ Stud, 29, 155-173, (1962) · doi:10.2307/2295952 |
| [7] | Barro RJ, Sala-i-Martin X (2003) Economic growth, 2nd edn. MIT Press, Cambridge |
| [8] | Baumol, WJ, Macroeconomics of unbalanced growth: the anatomy of urban crisis, Am Econ Rev, 57, 415-426, (1967) |
| [9] | Bonatti, L; Felice, G, Endogenous growth and changing sectoral composition in advanced economies, Struct Change Econ Dyn, 19, 109-131, (2008) · doi:10.1016/j.strueco.2007.07.002 |
| [10] | Bonatti, L; Felice, G, Trade and growth in a two country model with home production and uneven technological spillovers, Manch Sch, 78, 484-509, (2010) · doi:10.1111/j.1467-9957.2010.02205.x |
| [11] | Boppart, T, Structural change and the kaldor facts in a growth model with relative price effects and non-Gorman preferences, Econometrica, 82, 2167-2196, (2014) · Zbl 1419.91488 · doi:10.3982/ECTA11354 |
| [12] | Boppart T, Weiss FJ (2013) Non-homothetic preferences and industry directed technical change. SSRN. doi:10.2139/ssrn.2277547. Accessed 25 Sept 2016 |
| [13] | Buera, FJ; Kaboski, JP, Scale and the origins of structural change, J Econ Theory, 147, 684-712, (2012) · Zbl 1258.91165 · doi:10.1016/j.jet.2010.11.007 |
| [14] | Buera, FJ; Kaboski, JP, The rise of the service economy, Am Econ Rev, 102, 2540-2569, (2012) · doi:10.1257/aer.102.6.2540 |
| [15] | Cai J, Li N (2014) Growth through intersectoral knowledge linkages. Nanliweb. http://www.nanliweb.com/research. Accessed 25 Sept 2016 |
| [16] | Caselli, F; Coleman, WJ, The US structural transformation and regional convergence: a reinterpretation, J Polit Econ, 109, 584-616, (2001) · doi:10.1086/321015 |
| [17] | Caselli, F; Coleman, WJ, The world technology frontier, Am Econ Rev, 96, 499-522, (2006) · doi:10.1257/aer.96.3.499 |
| [18] | Comin DA, Lashkari D, Mestieri M (2015) Structural change with long-run income and price effects. NBER working paper no. 21595. http://www.nber.org/papers/w21595. Accessed 15 March 2017 |
| [19] | Duarte, M; Restuccia, D, The role of the structural transformation in aggregate productivity, Q J Econ, 125, 129-173, (2010) · doi:10.1162/qjec.2010.125.1.129 |
| [20] | Felice, G, Size and composition of public investment, sectoral composition and growth, Eur J Polit Econ, 44, 136-158, (2016) · doi:10.1016/j.ejpoleco.2016.07.001 |
| [21] | Foellmi, R; Zweimüller, J, Structural change, engel’s consumption cycles and kaldor’s facts of economic growth, J Monet Econ, 55, 1317-1328, (2008) · doi:10.1016/j.jmoneco.2008.09.001 |
| [22] | Foley DK, Michl TR (1999) Growth and distribution. Harvard University Press, Cambridge |
| [23] | Griliches, Z, The search for R&D spillovers, Scand J Econ, 94, s29-s47, (1992) · doi:10.2307/3440244 |
| [24] | Grossman, GM; Helpman, E, Endogenous innovation in the theory of growth, J Econ Perspect, 8, 23-44, (1994) · doi:10.1257/jep.8.1.23 |
| [25] | Herrendorf B, Valentinyi Á (2016) Endogenous sector-biased technological change and industrial policy. https://economicdynamics.org/meetpapers/2016/paper_105.pdf. Accessed 15 March 2017 · Zbl 1200.91226 |
| [26] | Herrendorf, B; Rogerson, R; Valentinyi, Á, Two perspectives on preferences and structural transformation, Am Econ Rev, 103, 2752-2789, (2013) · doi:10.1257/aer.103.7.2752 |
| [27] | Herrendorf, B; Rogerson, R; Valentinyi, Á; Aghion, P (ed.); Durlauf, SN (ed.), Growth and structural transformation, No. 2B, 855-941, (2014), North Holland |
| [28] | Hicks J (1932) The theory of wages. Macmillan, London |
| [29] | Hori, T; Ikefuji, M; Mino, K, Conformism and structural change, Int Econ Rev, 56, 939-961, (2015) · Zbl 1404.91205 · doi:10.1111/iere.12127 |
| [30] | Jones, CI, R&D-based models of economic growth, J Polit Econ, 103, 759-784, (1995) · doi:10.1086/262002 |
| [31] | Jones, CI; Scrimgeour, D, A new proof of uzawa’s steady-state growth theorem, Rev Econ Stat, 90, 180-182, (2008) · doi:10.1162/rest.90.1.180 |
| [32] | Kaldor, N; Lutz, F (ed.); Hague, DC (ed.), Capital accumulation and economic growth, 177-222, (1961), New York · doi:10.1007/978-1-349-08452-4_10 |
| [33] | Kamihigashi, T, Necessity of transversality conditions for infinite horizon problems, Econometrica, 69, 995-1012, (2001) · Zbl 1020.49019 · doi:10.1111/1468-0262.00227 |
| [34] | Kennedy, C, Induced bias in innovation and the theory of distribution, Econ J, 74, 541-547, (1964) · doi:10.2307/2228295 |
| [35] | Kiley, MT, The supply of skilled labour and skill-biased technological progress, Econ J, 109, 708-724, (1999) · doi:10.1111/1468-0297.00470 |
| [36] | King, RG; Rebelo, ST, Transitional dynamics and economic growth in the neoclassical model, Am Econ Rev, 83, 908-931, (1993) |
| [37] | Kongsamut, P; Rebelo, S; Xie, D, Beyond balanced growth, Rev Econ Stud, 68, 869-882, (2001) · Zbl 1051.91070 · doi:10.1111/1467-937X.00193 |
| [38] | Kuznets, S, Quantitative aspects of the economic growth of nations: II. industrial distribution of national product and labor force, Econ Dev Cult Change, 5, 1-111, (1957) · doi:10.1086/449740 |
| [39] | Kuznets, S, Modern economic growth: findings and reflections, Am Econ Rev, 63, 247-258, (1973) |
| [40] | Lin JY, Zhang P (2007) Development strategy, optimal industrial structure and economic growth in less developed countries. Harvard’s CID graduate student and postdoctoral fellow working paper no. 19. http://www.cid.harvard.edu/cidwp/grad/019.htm. Accessed 15 March 2017 |
| [41] | Matsuyama, K; Durlauf, SN (ed.); Blume, LE (ed.), Structural change, (2008), London |
| [42] | Meckl, J, Structural change and generalized balanced growth, J Econ, 77, 241-266, (2002) · Zbl 1041.91043 · doi:10.1007/s00712-002-0542-0 |
| [43] | Moro, A, Structural change, growth, and volatility, Am Econ J Macroecon, 7, 259-294, (2015) · doi:10.1257/mac.20130057 |
| [44] | National Science Board (2012) Science and engineering indicators 2012. National Science Foundation, Arlington VA. http://www.nsf.gov/statistics/seind12/pdf/c04.pdf. Accessed 25 Sept 2016 |
| [45] | Ngai, LR; Pissarides, CA, Structural change in a multisector model of growth, Am Econ Rev, 97, 429-443, (2007) · doi:10.1257/aer.97.1.429 |
| [46] | Ngai, LR; Samaniego, RM, Accounting for research and productivity growth across industries, Rev Econ Dyn, 14, 475-495, (2011) · doi:10.1016/j.red.2009.12.002 |
| [47] | Pardey PG, Alston JM, Chan-Kang C (2013) Public food and agricultural research in the United States: the rise and decline of public investments, and policies for renewal. AGree Commissioned Papers and Reports. http://www.foodandagpolicy.org/sites/default/files/AGree-Public |
| [48] | Rebelo, S, Long-run policy analysis and long-run growth, J Polit Econ, 99, 500-521, (1991) · doi:10.1086/261764 |
| [49] | Rivera-Batiz, LA; Romer, PM, Economic integration and endogenous growth, Q J Econ, 106, 531-555, (1991) · doi:10.2307/2937946 |
| [50] | Romer, PM, Endogenous technological change, J Polit Econ, 98, s71-s102, (1990) · doi:10.1086/261725 |
| [51] | Shell, K, Toward a theory of inventive activity and capital accumulation, Am Econ Rev, 56, 62-68, (1966) |
| [52] | Thoenig, M; Verdier, T, A theory of defensive skill-biased innovation and globalization, Am Econ Rev, 93, 709-728, (2003) · doi:10.1257/000282803322157052 |
| [53] | Uzawa, H, Neutral inventions and the stability of growth equilibrium, Rev Econ Stud, 28, 117-124, (1961) · doi:10.2307/2295709 |
| [54] | Violante, GL; Durlauf, SN (ed.); Blume, LE (ed.), Skill-biased technical change, (2008), London |
| [55] | Wallis P, Colson J, Chilosi D (2016) Puncturing the Malthus delusion: structural change in the British economy before the industrial revolution, 1500-1800. LSE economic history working papers. http://eprints.lse.ac.uk/66816/1/WP240.pdf. Accessed 15 March 2017 |
| [56] | Zhang P (2013) Capital augmenting technical change and time-varying labor share. SSRN. doi:10.2139/ssrn.2219561. Accessed 25 Sept 2016 |
| [57] | Zhang P, Liu M (2009) Structural change in the two-sector model with endogenous technological progress. SSRN. doi:10.2139/ssrn.1523602. Accessed 25 Sept 2016 |
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.
