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Evolving comparative advantage, sectoral linkages, and structural change

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  • Sposi, Michael

Abstract

Intermediate-input intensities vary systematically with economic development across countries. These cross-country differences in input–output linkages account for 74% of the curvature in the hump shape in industry’s share in value added across levels of income per capita. This is twice as much as can be accounted for by variation in the composition of final demand. Using a three-sector, open-economy model of structural change I find that this result is robust to general equilibrium effects.

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  • Sposi, Michael, 2019. "Evolving comparative advantage, sectoral linkages, and structural change," Journal of Monetary Economics, Elsevier, vol. 103(C), pages 75-87.
    • Handle: RePEc:eee:moneco:v:103:y:2019:i:c:p:75-87
    DOI: 10.1016/j.jmoneco.2018.08.003
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    More about this item

    Keywords

    Input-output; Structural change; International trade;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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