Quibria, M.G and Srinivasan, T.N. (2010): Technological Progress, Factor Endowments and Structural Change:A Note. Published in: Bangladesh Development Studies , Vol. 32, No. Number 4 (December 2009): pp. 95-103.
Download (509kB) | Preview
Economic development is accompanied by structural change. The trade theoretic literature offers two major hypotheses – i. e., the factor-endowment and the total-factor-productivity-- for explaining the stylized facts of structural change. This note revisits these hypotheses. In particular, it explores, with the help of a simple geometric apparatus, the analytical implications of the two hypotheses and draws out their striking similarities. It argues that although the literature has treated these two hypotheses as distinctly different, they are indeed analytically equivalent in the sense that they are both based on a similar type of shifts in the production functions. An important implication of this analytical equivalence is that, compounded with the data problems, it makes the task of empirical testing and discriminating between the two alternative hypotheses virtually impossible.
|Item Type:||MPRA Paper|
|Original Title:||Technological Progress, Factor Endowments and Structural Change:A Note|
|English Title:||Technological Progress, Factor Endowments and Structural Change:A Note|
|Keywords:||nontraded good, technological progress, total-factor-productivity, factor endowment, and economic growth|
|Subjects:||O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O30 - General
F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development
|Depositing User:||M.G Quibria|
|Date Deposited:||02. Oct 2010 20:58|
|Last Modified:||11. Feb 2013 23:10|
Acemoglou, D. and V. Guerrieri, 2008. Capital Deepening and Non-Balanced Economic Growth, Journal of Political Economy 116(3), June, 467-498
Balassa, B., 1964. The Purchasing-Power Parity Doctrine: A Reappraisal, Journal of Political Economy 72, December, 584-96
Buera, Francisco J. and Joseph P. Kaboski, 2007. Scale and the Origins of Structural Change, Working Paper, Northwestern and Ohio State Universities, 2007. Forthcoming Journal of the European Economic Association
Bhagwati, J.N., 1984. Why are Services cheaper in the Poor Countries? Economic Journal 94, June, 279-86 Chenery, Hollis B. , 1979. Structural Change and Development Policy. New York: Oxford University Press
Harrod, R. F., 1993. International Economics. Cambridge Economic Handbooks. London: Nisbet & Cambridge University Press.
Kaldor, N., 1961.Capital Accumulation and Economic Growth, in E.A. Lutz and DD.C. Hague, eds., The Theory of Capital, St. Martins Press.
Kravis, I., and R. Lipsey, 1983. Toward an Explanation of National Price Levels, Princeton Studies in International Finance 52, Princeton, New Jersey: Princeton University Press.
Kuznets, Simon, 1966. Modern Economic Growth: Rate, Structure, and Spread. New Haven, Connecticut: Yale University Press.
Matsuyama, K. 2008. Structural Change in an Interdependent World: A Global View of Manufacturing Decline, forthcoming in Journal of the European Economic Association.
Ngai, L. R, and C. A. Pissarides, 2007. Structural Change in a Multi-Sector Model of Growth, American Economic Review, 97, March,429-443.
Quibria, M.G., 1990. Note on International Difference in Services Prices and Some Related Empirical Phenomenon, Journal of Development Economics 33, 357-70.
_________, 1996. Technological Progress, Service Prices and Stylized Facts of Economic Growth, Asian Development Bank mimeo.
Samuelson, P.A., 1964. Theoretical Notes on Trade Problems, The Review of Economics and Statistics 46, May, 145-154.