Economic growth and sector dynamics |
| |
| Affiliation: | 1. Hebrew University of Jersualem, LUISS, CEPR and RCEA, Jerusalem, Israel;2. New Economic School, Moscow, Russia;1. International Monetary Fund, United States;2. Institute of Informatics, Warsaw University, Poland;3. Faculty of Economics & Christ''s College, University of Cambridge, United Kingdom;1. Université Nice Sophia Antipolis, GREDEG, UMR 7321, 250 rue Albert Einstein, 06560 Valbonne, France;2. Keio Economic Observatory, Keio University, 2-15-45, Mita, Minato-ku, Tokyo 108-8345, Japan;3. RIETI, Japan;4. OFCE-SKEMA Business School, France;5. OFCE Sciences Po, SKEMA Business School, 60 rue Dostoïevski BP 85, 06902 Sophia-Antipolis Cedex, France;6. GREDEG UMR 7321, France;1. Institute of Economic Research, Kyoto University and Research Institute of Economy, Trade and Industry (RIETI), Japan;2. Department of Electrical and Systems Engineering, University of Pennsylvania, United States;1. Institut National de la Statistique et des Études Économiques (STATEC), EPR2 Unit, 13 Rue Erasme BP304 L-2013, Luxembourg;2. CREST-Timbre J390,15 Boulevard Gabriel Péri 92245 Malakoff Cedex, France;3. UNU-MERIT, Maastricht University and CIRANO, University of Maastricht, P.O. Box 616, 6200 MD Maastricht, The Netherlands;4. Maastricht University, Department of Quantitative Economics, P.O. Box 616, 6200 MD Maastricht, The Netherlands;1. Aix-Marseille University (Aix-Marseille School of Economics), CNRS and EHESS, France;2. Monash University, Australia and IFN, Sweden |
| |
| Abstract: | This paper analyzes the endogenous determination of sectors in a growing economy. It assumes that there are traditional sectors and modern sectors and economic growth is driven by rising productivity of the modern sectors. It also assumes that individuals are heterogeneous, which leads to increasing marginal opportunity costs in creating new modern sectors. We show that under these main assumptions, economic growth first increases diversification to sectors and then reduces it. We also show that for the equilibrium to be stable and well-behaved, it is required that the modern and traditional sectors should be substitutes and not complements. |
| |
| Keywords: | Traditional sectors Modern sectors Diversification Economic growth Substitutability |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
