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Unbalanced growth

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  • Kala Krishna
  • César Pérez

Abstract

We study a model designed to understand the concept of unbalanced growth. We define leading sectors to be those that raise the profits from industrialization for other sectors the most. We identify the leading sectors and show that subsidizing them in sequence will raise welfare if the future is not discounted too strongly.

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Bibliographic Info

Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 38 (2005)
Issue (Month): 3 (August)
Pages: 832-851

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Handle: RePEc:cje:issued:v:38:y:2005:i:3:p:832-851

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  1. Kala Krishna & Cesar A. Perez, 2004. "Unbalanced Growth," NBER Working Papers 10899, National Bureau of Economic Research, Inc.
  2. Murphy, Kevin M. & Shleifer, Andrei & Vishny, Robert W., 1989. "Industrialization and the Big Push," Scholarly Articles 3606235, Harvard University Department of Economics.
  3. Kiminori Matsuyama, 1995. "Complementarities and Cumulative Processes in Models of Monopolistic Competition," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 701-729, June.
  4. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 62, pages 143.
  5. R. Dornbusch & S. Fischer & P. A. Samuelson, 1976. "Comparative Advantage, Trade and Payments in a Ricardian Model With a Continuum of Goods," Working papers 178, Massachusetts Institute of Technology (MIT), Department of Economics.
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Cited by:
  1. Kala Krishna & César Pérez, 2005. "Unbalanced growth," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 38(3), pages 832-851, August.

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