A simple theory of structural transformation

Gillman, Max 2011. A simple theory of structural transformation. [Working Paper]. Cardiff Economics Working Papers, Cardiff: Cardiff University. Available at: http://business.cardiff.ac.uk/research/working-pap...

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Abstract

The paper presents a theory of the industrial transformation amongst sectors along the balanced growth path equilibrium, using endogenous growth theory. Allowing only a slight upward trend in the productivity of the human capital sector, combined with ascending degrees of human capital shares of sectoral output, in say, agriculture, manufacturing and services, output gradually shifts relatively over time from agriculture to manufacturing and to services. Abstracting from international trade theory, sectors intensive in the factor that is becoming relatively more plentiful Önd their relative outputs expanding. Adding more sectors of greater human capital intensity causes labor time to decrease within each sector, as shown for agriculture, and in general for any number of sectors. The number of sectors is also allowed to depend endogenously on the human capital productivity level.

Item Type:	Monograph (Working Paper)
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Uncontrolled Keywords:	Human Capital Intensity; Sectoral Allocation; Labor Shares; Secular Endogenous Growth.
Publisher:	Cardiff University
ISBN:	1749-6101
Date of First Compliant Deposit:	30 March 2016
Last Modified:	19 Mar 2016 22:51
URI:	https://orca.cardiff.ac.uk/id/eprint/29574

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