Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE ( © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 09 July 2020

Abstract and Keywords

This chapter illustrates how structural transformation and outcomes resembling balanced growth at the aggregate level can be generated simultaneously using a growth model. It begins with a discussion of the three key economic mechanisms that drive structural transformation: the first emphasizes income effects while the other two both emphasize relative price effects. These mechanisms are then incorporated into a standard version of the growth model to test whether it is possible to obtain balanced growth and structural transformation at the same time. By extending the model to include multiple consumption sectors, a new model that generates balanced growth and structural transformation is achieved. The chapter also explains how three basic mechanisms described can drive sectoral reallocation of labour in the face of development associated with increases in productivity and capital.

Keywords: structural transformation, balanced growth, income effects, relative price effects, growth model, consumption, reallocation of labour, development, productivity, capital

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.