Endogenous growth and changing sectoral composition in advanced economies
AbstractWe study how changing sectoral composition in employment and output shares affects aggregate growth by modeling a two-sector economy with a technologically "progressive" industry, which produces for consumption and investment, and a technologically "stagnant" industry producing only for consumption. Hence, unbalanced improvements in total factor productivity interact with changes in the composition of final demand in shaping the growth process. Within this endogenous growth framework, we show under what conditions on preferences Baumol's asymptotic stagnancy occurs. Beside studying the limiting behavior of the economy, numerical examples are presented to analyze the structural change going on along the transition path.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Structural Change and Economic Dynamics.
Volume (Year): 19 (2008)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/525148
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert J. Barro, 1995.
"Inflation and Economic Growth,"
NBER Working Papers
5326, National Bureau of Economic Research, Inc.
- Baumol, William J & Blackman, Sue Anne Batey & Wolff, Edward N, 1985.
"Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence,"
American Economic Review,
American Economic Association, vol. 75(4), pages 806-17, September.
- Baumol, William J. & Batey Blackman, Sue Anne & Wolff, Edward N., 1984. "Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence," Working Papers 84-02, C.V. Starr Center for Applied Economics, New York University.
- Hill, T P, 1977. "On Goods and Services," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 23(4), pages 315-38, December.
- Echevarria, Cristina, 1997. "Changes in Sectoral Composition Associated with Economic Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(2), pages 431-52, May.
- Piyabha Kongsamut & Sergio Rebelo & Danyang Xie, 1997.
"Beyond Balanced Growth,"
NBER Working Papers
6159, National Bureau of Economic Research, Inc.
- Sergio Rebelo & Piyabha Kongsamut & Danyang Xie, 2001. "Beyond Balanced Growth," IMF Working Papers 01/85, International Monetary Fund.
- Kongsamut, Piyabha & Rebelo, Sérgio & Xie, Danyang, 1997. "Beyond Balanced Growth," CEPR Discussion Papers 1693, C.E.P.R. Discussion Papers.
- Kongsamut, P. & Rebelo, S. & Xie, D., 1997. "Beyong Balanced Growth," RCER Working Papers 438, University of Rochester - Center for Economic Research (RCER).
- Jonathan Temple, 2003. "The Long-Run implications of Growth Theories," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 497-510, 07.
- Pugno, Maurizio, 2006.
"The service paradox and endogenous economic growth,"
Structural Change and Economic Dynamics,
Elsevier, vol. 17(1), pages 99-115, January.
- Maurizio Pugno, 2003. "The service paradox and endogenous economic growth," Department of Economics Working Papers 0301, Department of Economics, University of Trento, Italia.
- Greenhalgh, Christine & Gregory, Mary, 2001. " Structural Change and the Emergence of the New Service Economy," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 63(0), pages 629-46, Special I.
- Peter Hill, 1999. "Tangibles, intangibles and services: a new taxonomy for the classification of output," Canadian Journal of Economics, Canadian Economics Association, vol. 32(2), pages 426-446, April.
- Aoki, Masanao & Yoshikawa, Hiroshi, 2002. "Demand saturation-creation and economic growth," Journal of Economic Behavior & Organization, Elsevier, vol. 48(2), pages 127-154, June.
- Michael Peneder, 2002.
"Industrial Structure and Aggregate Growth,"
WIFO Working Papers
- Mohnen, P. & Raa, T. ten, 2000.
"A general equilibrium analysis of the evolution of Canadian service productivity,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-86157, Tilburg University.
- Mohnen, Pierre & ten Raa, Thijs, 2000. "A general equilibrium analysis of the evolution of Canadian service productivity," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 491-506, December.
- Nordhaus William D, 2008.
"Baumol's Diseases: A Macroeconomic Perspective,"
The B.E. Journal of Macroeconomics,
De Gruyter, vol. 8(1), pages 1-39, February.
- Foellmi, Reto & Zweimüller, Josef, 2002.
"Structural Change and the Kaldor Facts of Economic Growth,"
IZA Discussion Papers
472, Institute for the Study of Labor (IZA).
- Foellmi, Reto & Zweimüller, Josef, 2002. "Structural Change and the Kaldor Facts of Economic Growth," CEPR Discussion Papers 3300, C.E.P.R. Discussion Papers.
- Reto Foellmi & Josef Zweimüller, . "Structural Change and the Kaldor Facts of Economic Growth," IEW - Working Papers 111, Institute for Empirical Research in Economics - University of Zurich.
- Reto Foellmi & Josef Zweilmueller, 2006. "Structural Change and the Kaldor Facts of Economic Growth," 2006 Meeting Papers 342, Society for Economic Dynamics.
- Nicholas Oulton, 2000.
"Must the growth rate decline? Baumol's unbalanced growth revisited,"
Bank of England working papers
107, Bank of England.
- Oulton, Nicholas, 2001. "Must the Growth Rate Decline? Baumol's Unbalanced Growth Revisited," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 605-27, October.
- Robert Rowthorn & Ramana Ramaswamy, 1999. "Growth, Trade, and Deindustrialization," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 2.
- Schettkat, Ronald & Yocarini, Lara, 2006. "The shift to services employment: A review of the literature," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 127-147, June.
- Sharon G. Harrison, 2003. "Returns to Scale and Externalities in the Consumption and Investment Sectors," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(4), pages 963-976, October.
- Parrinello, Sergio, 2004. "The service economy revisited," Structural Change and Economic Dynamics, Elsevier, vol. 15(4), pages 381-400, December.
- Glyn, Andrew, 1997.
"Does Aggregate Profitability Really Matter?,"
Cambridge Journal of Economics,
Oxford University Press, vol. 21(5), pages 593-619, September.
- Pierre Mohnen & Thijs Ten Raa, 2000. "Productivity Trends and Employment across Industries in Canada," CIRANO Working Papers 2000s-10, CIRANO.
- Laitner, John, 2000. "Structural Change and Economic Growth," Review of Economic Studies, Wiley Blackwell, vol. 67(3), pages 545-61, July.
- Hiroaki Sasaki, 2010. "Endogenous Phase Switch in Baumol’s Service Paradox Model," Discussion papers e-10-010, Graduate School of Economics Project Center, Kyoto University.
- Hiroaki Sasaki, 2011. "Export of Deindustrialization and Anti-Balassa-Samuelson Effect: The Consequences of Productivity Growth Differential," Discussion papers e-10-015, Graduate School of Economics Project Center, Kyoto University.
- Pedro Mazeda Gil & Oscar Afonso & Paulo Brito, 2012. "Skill Structure and Technology Structure: Innovation and Growth Implications," FEP Working Papers 470, Universidade do Porto, Faculdade de Economia do Porto.
- Fiorillo, Damiano & Sabatini, Fabio, 2011.
"Structural social capital and health in Italy,"
32392, University Library of Munich, Germany.
- D. Fiorillo; & F. Sabatini;, 2011. "Structural social capital and health in Italy," Health, Econometrics and Data Group (HEDG) Working Papers 11/23, HEDG, c/o Department of Economics, University of York.
- Fiorillo, Damiano & Sabatini, Fabio, 2011. "Structural social capital and health in Italy," MPRA Paper 32367, University Library of Munich, Germany.
- Damiano Fiorillo & Fabio Sabatini, 2011. "Structural social capital and health in Italy," Discussion Papers 8_2011, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
- J. Stan Metcalfe & John Foster, 2009. "Evolutionary Growth Theory," Discussion Papers Series 388, School of Economics, University of Queensland, Australia.
- Maroto-Sánchez, Andrés & Cuadrado-Roura, Juan R., 2009. "Is growth of services an obstacle to productivity growth? A comparative analysis," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 254-265, December.
- Dietrich, Andreas & Krüger, Jens, 2010. "Numerical Explorations of the Ngai-Pissarides Model of Growth and Structural Change," Darmstadt Discussion Papers in Economics 46865, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).
- Giulia Felice, 2010. "A Two-Sector Model of Public Investment and Growth," DEGIT Conference Papers c015_060, DEGIT, Dynamics, Economic Growth, and International Trade.
- Andreas Dietrich, 2009.
"Does Growth Cause Structural Change, or Is it the Other Way Round? A Dynamic Panel Data Analyses for Seven OECD Countries,"
Jena Economic Research Papers
2009-034, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Andreas Dietrich, 2012. "Does growth cause structural change, or is it the other way around? A dynamic panel data analysis for seven OECD countries," Empirical Economics, Springer, vol. 43(3), pages 915-944, December.
- Sasaki, Hiroaki, 2012. "Endogenous phase switch in Baumol's service paradox model," Structural Change and Economic Dynamics, Elsevier, vol. 23(1), pages 25-35.
- Gries, Thomas & Naude, Wim, 2008.
"Entrepreneurship and Structural Economic Transformation,"
Working Paper Series
RP2008/62, World Institute for Development Economic Research (UNU-WIDER).
- Thomas Gries & Wim Naudé, 2010. "Entrepreneurship and structural economic transformation," Small Business Economics, Springer, vol. 34(1), pages 13-29, January.
- Ikhlaas Gurrib, 2011. "The Impact of Mining and Services Industries on the Structural Change of Australia," International Journal of Economic Sciences and Applied Research (IJESAR), Technological Educational Institute (TEI) of Kavala, Greece, vol. 4(2), pages 35-51, August.
- Hartwig, Jochen, 2012.
"Testing the growth effects of structural change,"
Structural Change and Economic Dynamics,
Elsevier, vol. 23(1), pages 11-24.
- Pedro Mazeda Gil & Oscar Afonso & Paulo B. Vasconcelos, 2013. "Industry Dynamics and Aggregate Stability over Transition," FEP Working Papers 484, Universidade do Porto, Faculdade de Economia do Porto.
- Marta C. N. Simões & Adelaide Duarte, 2013. "Human Capital and Growth in a Services Economy: the Case of Portugal," GEMF Working Papers 2013-21, GEMF - Faculdade de Economia, Universidade de Coimbra.
- Cristian Dragos & Simona Laura Dragos, 2012. "Econometric Estimations of the Services and Financial Sector Impact on Economic Growth Variations in Times of Crisis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 14(Special N), pages 621-634, November.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.