Growth and Structural Transformation

Berthold Herrendorf, Richard Rogerson and Akos Valentinyi ()

No 18996, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Structural transformation refers to the reallocation of economic activity across the broad sectors agriculture, manufacturing and services. This review article synthesizes and evaluates recent advances in the research on structural transformation. We begin by presenting the stylized facts of structural transformation across time and space. We then develop a multi-sector extension of the one-sector growth model that encompasses the main existing theories of structural transformation. We argue that this multi-sector model serves as a natural benchmark to study structural transformation and that it is able to account for many salient features of structural transformation. We also argue that this multi-sector model delivers new and sharper insights for understanding economic development, regional income convergence, aggregate productivity trends, hours worked, business cycles, and wage inequality. We conclude by suggesting several directions for future research on structural transformation.

JEL-codes: E20 O40 (search for similar items in EconPapers)
Date: 2013-04
New Economics Papers: this item is included in nep-mac
Note: EFG
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Citations: View citations in EconPapers (89)

Published as Handbook of Economic Growth Volume 2, 2014, Pages 855–941 Handbook of Economic Growth Cover image Chapter 6 – Growth and Structural Transformation Berthold Herrendorf*, Richard Rogerson†, Ákos Valentinyi‡

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Related works:
Chapter: Growth and Structural Transformation (2014)
Working Paper: Growth and Structural Transformation (2013)
Working Paper: Growth and Structural Transformation (2007)
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