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Structural Change in an Interdependent World: A Global View of Manufacturing Decline

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Author Info
Kiminori Matsuyama

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Abstract

This paper presents a simple model of the world economy, in which productivity gains in manufacturing are responsible for the global trend of manufacturing decline, and yet, in a cross-section of countries, faster productivity gains in manufacturing do not necessarily imply faster declines in manufacturing. In doing so, it aims to draw attention to the common pitfall of using the cross-country evidence to test a closed economy model, and argues for a global perspective; in order to understand cross-country patterns of structural change, one needs a world economy model in which the interdependence across countries is explicitly spelled out. (JEL: F43, O11, O14, O19) (c) 2009 by the European Economic Association.

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File URL: http://www.mitpressjournals.org/doi/pdfplus/10.1162/JEEA.2009.7.2-3.478
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Publisher Info
Article provided by MIT Press in its journal Journal of the European Economic Association.

Volume (Year): 7 (2009)
Issue (Month): 2-3 (04-05)
Pages: 478-486
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Handle: RePEc:tpr:jeurec:v:7:y:2009:i:2-3:p:478-486

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Find related papers by JEL classification:
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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This page was last updated on 2009-11-16.


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