IDEAS home Printed from https://ideas.repec.org/p/adb/adbwps/2369.html
   My bibliography  Save this paper

Working Paper 258 - Structural Transformation: A competitiveness-based view

Author

Listed:
  • Ketels Christian

Abstract

Competitiveness has been proposed as an integrated framework to understand the drivers of prosperity differences across locations (Porter, 1990). This chapter outlines key elements of the competitiveness framework and relates them to the idea of structural transformation (Lin, 2016, 2012). What emerges are significant similarities and complementarities between the two, as well as other related work on new industrial policy, economic complexity, evolutionary economic geography and innovation systems. All of these approaches share a granular and often sector-specific perspective onmicroeconomic structures and systems, moving beyond macroeconomic, economy-wide, or single factor microeconomic explanations of prosperity and development.But there are also meaningful differences with significant policy implications: the competitiveness literature views sectoral composition as a largely endogenous part of development, while the structural transformation literature frames it as a fundamental driver of development. The competitiveness literature argues for a focus on upgrading competitiveness fundamentals in a highly context-specific way, using all existing clusters of related industries as platforms to inform and mobilize action to upgrade competitiveness. The structural transformation literature suggests pushingthe development of specific industries perceived to have more development potential, using industry specific interventions downside risk aversion. This underscores the need to account for farmers’ preferences towards higher order moments when designing technology adoption policies

Suggested Citation

  • Ketels Christian, 2017. "Working Paper 258 - Structural Transformation: A competitiveness-based view," Working Paper Series 2369, African Development Bank.
    • Handle: RePEc:adb:adbwps:2369
    as

    Download full text from publisher

    File URL: https://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/WPS_No_258_Structural_Transformation_and_Competitiveness_Za.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Douglas Gollin & Remi Jedwab & Dietrich Vollrath, 2013. "Urbanization with and without Structural Transformation," 2013 Meeting Papers 344, Society for Economic Dynamics.
    2. Van Reenen, John & Bloom, Nicholas & Sadun, Raffaella, 2016. "Management as a Technology," CEPR Discussion Papers 11312, C.E.P.R. Discussion Papers.
    3. Guy Michaels & Ferdinand Rauch & Stephen J. Redding, 2012. "Urbanization and Structural Transformation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(2), pages 535-586.
    4. Ricardo Hausmann & Bailey Klinger, 2007. "The Structure of the Product Space and the Evolution of Comparative Advantage," CID Working Papers 146, Center for International Development at Harvard University.
    5. Maloney, William F. & Valencia Caicedo, Felipe, 2014. "Engineers, Innovative Capacity and Development in the Americas," IZA Discussion Papers 8271, Institute of Labor Economics (IZA).
    6. Rodriguez-Clare, Andres, 2007. "Clusters and comparative advantage: Implications for industrial policy," Journal of Development Economics, Elsevier, vol. 82(1), pages 43-57, January.
    7. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941, Elsevier.
    8. Justin Yifu Lin, 2012. "New Structural Economics : A Framework for Rethinking Development and Policy," World Bank Publications - Books, The World Bank Group, number 2232, December.
    9. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    10. Enrico Spolaore & Romain Wacziarg, 2013. "How Deep Are the Roots of Economic Development?," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 325-369, June.
    11. Peter Timmer & Selvin Akkus, 2008. "The Structural Transformation as a Pathway out of Poverty: Analytics, Empirics and Politics," Working Papers 150, Center for Global Development.
    12. Frank Neffke & Martin Henning & Ron Boschma, 2011. "How Do Regions Diversify over Time? Industry Relatedness and the Development of New Growth Paths in Regions," Economic Geography, Taylor & Francis Journals, vol. 87(3), pages 237-265, July.
    13. Joseph E. Stiglitz & Justin Yifu Lin (ed.), 2013. "The Industrial Policy Revolution I," International Economic Association Series, Palgrave Macmillan, number 978-1-137-33517-3, December.
    14. Justin Yifu Lin, 2012. "The Quest for Prosperity: How Developing Economies Can Take Off," Economics Books, Princeton University Press, edition 1, volume 1, number 9812.
    15. Mercedes Delgado & Michael E. Porter & Scott Stern, 2016. "Defining clusters of related industries," Journal of Economic Geography, Oxford University Press, vol. 16(1), pages 1-38.
    16. Mercedes Delgado & Michael E. Porter & Scott Stern, 2010. "Clusters and entrepreneurship," Journal of Economic Geography, Oxford University Press, vol. 10(4), pages 495-518, July.
    17. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    18. Jean Imbs & Romain Wacziarg, 2003. "Stages of Diversification," American Economic Review, American Economic Association, vol. 93(1), pages 63-86, March.
    19. repec:idb:brikps:7694 is not listed on IDEAS
    20. Christian Ketels & Sergiy Protsiv, 2013. "Clusters and the New Growth Path for Europe. WWWforEurope Working Paper No. 14," WIFO Studies, WIFO, number 46866, April.
    21. Gordon C. McCord & Jeffrey D. Sachs, 2013. "Development, Structure, and Transformation: Some Evidence on Comparative Economic Growth," NBER Working Papers 19512, National Bureau of Economic Research, Inc.
    22. Kim-Song Tan & Sock-Yong Phang, 2004. "From Efficiency-driven to Innovation-driven Economic Growth: Perspectives from Singapore," Working Papers 15-2004, Singapore Management University, School of Economics.
    23. Altenburg, Tilman & Kleinz, Maria & Lütkenhorst, Wilfried, 2016. "Directing structural change: from tools to policy," IDOS Discussion Papers 24/2016, German Institute of Development and Sustainability (IDOS).
    24. Christian Ketels, 2017. "Upgrading regional competitiveness: what role for regional governments?," Chapters, in: Robert Huggins & Piers Thompson (ed.), Handbook of Regions and Competitiveness, chapter 22, pages 501-517, Edward Elgar Publishing.
    25. Frankel, Jeffrey A., 2010. "The Natural Resource Curse: A Survey," Scholarly Articles 4454156, Harvard Kennedy School of Government.
    26. Michael Kitson & Ron Martin & Peter Tyler, 2004. "Regional Competitiveness: An Elusive yet Key Concept?," Regional Studies, Taylor & Francis Journals, vol. 38(9), pages 991-999.
    27. Eduardo Fernández-Arias & Charles Sabel & Ernesto H. Stein & Alberto Trejos, 2016. "Two to Tango: Public-Private Collaboration for Productive Development Policies," IDB Publications (Books), Inter-American Development Bank, number 94716, February.
    28. Christian H.M. Ketels & Olga Memedovic, 2008. "From clusters to cluster-based economic development," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(3), pages 375-392.
    29. Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
    30. Dani Rodrik, 2007. "Introductiion to One Economics, Many Recipes: Globalization, Institutions, and Economic Growth," Introductory Chapters, in: One Economics, Many Recipes: Globalization, Institutions, and Economic Growth, Princeton University Press.
    31. Mercedes Delgado & Christian Ketels & Michael E. Porter & Scott Stern, 2012. "The Determinants of National Competitiveness," NBER Working Papers 18249, National Bureau of Economic Research, Inc.
    32. Sachs, Jeffrey D. & Warner, Andrew M., 2001. "The curse of natural resources," European Economic Review, Elsevier, vol. 45(4-6), pages 827-838, May.
    33. Dani Rodrik, 2011. "Comments on "New Structural Economics"; by Justin Yifu Lin," The World Bank Research Observer, World Bank, vol. 26(2), pages 227-229, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marian Gorski & Patrycja Chodnicka-Jaworska, 2019. "The Process of Catching up with the Economic Development of OECD Countries and the Role of Foreign Direct Investment in this Process," Book, University of Warsaw, Faculty of Management, edition 1, volume 1, number y:2019:v:1:ch:8:p:165-186 edited by Justin Yifu Lin & Alojzy Z. Nowak, June.
    2. Jyotsna Joshi, 2021. "Competitiveness, Manufacturing and Infrastructure: The Asian Paradigm," Journal of Development Policy and Practice, , vol. 6(1), pages 78-107, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bahar, Dany & Rosenow, Samuel & Stein, Ernesto & Wagner, Rodrigo, 2019. "Export take-offs and acceleration: Unpacking cross-sector linkages in the evolution of comparative advantage," World Development, Elsevier, vol. 117(C), pages 48-60.
    2. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    3. Timothy F. Slaper & Karter M. Harmon & Barry M. Rubin, 2018. "Industry Clusters and Regional Economic Performance: A Study Across U.S. Metropolitan Statistical Areas," Economic Development Quarterly, , vol. 32(1), pages 44-59, February.
    4. Dorinet, Elizavetta & Jouvet, Pierre-André & Wolfersberger, Julien, 2021. "Is the agricultural sector cursed too? Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 140(C).
    5. Nouf Nasser Alsharif, 2017. "Three essays on growth and economic diversification in resource-rich countries," Economics PhD Theses 0317, Department of Economics, University of Sussex Business School.
    6. Justin Yifu Lin & Célestin Monga & Samuel Standaert, 2019. "The Inclusive Sustainable Transformation Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 47-80, May.
    7. Hausmann, Ricardo & Stock, Daniel P. & Yıldırım, Muhammed A., 2022. "Implied comparative advantage," Research Policy, Elsevier, vol. 51(8).
    8. Sergey Kadochnikov & Anna Fedyunina, 2013. "Export diversification in the product space and regional growth: Evidence from Russia," Papers in Evolutionary Economic Geography (PEEG) 1327, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2013.
    9. Peter Lloyd & Cassey Lee, 2018. "A Review Of The Recent Literature On The Institutional Economics Analysis Of The Long†Run Performance Of Nations," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 1-22, February.
    10. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342, April.
    11. Carmelina Bevilacqua & Ilaria Giada Anversa & Gianmarco Cantafio & Pasquale Pizzimenti, 2019. "Local Clusters as “Building Blocks” for Smart Specialization Strategies: A Dynamic SWOT Analysis Application in the Case of San Diego (US)," Sustainability, MDPI, vol. 11(19), pages 1-25, October.
    12. Jian Gao & Bogang Jun & Alex Sandy Pentland & Tao Zhou & Cesar A. Hidalgo, 2017. "Collective Learning in China's Regional Economic Development Formations of Co-Inventors During the Dot-com Bubble in the Research Triangle Region," Papers in Evolutionary Economic Geography (PEEG) 1706, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2017.
    13. Jian Gao & Bogang Jun & Alex Sandy Pentland & Tao Zhou & Cesar A. Hidalgo, 2017. "Collective Learning in China's Regional Economic Development," Papers 1703.01369, arXiv.org.
    14. Moussir, Charaf-Eddine & Chatri, Abdellatif, 2020. "Structural change and labour productivity growth in Morocco," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 353-358.
    15. Keun Lee & Calestous Juma & John Mathews, 2014. "Innovation Capabilities for Sustainable Development in Africa," WIDER Working Paper Series wp-2014-062, World Institute for Development Economic Research (UNU-WIDER).
    16. Joya, Omar, 2015. "Growth and volatility in resource-rich countries: Does diversification help?," Structural Change and Economic Dynamics, Elsevier, vol. 35(C), pages 38-55.
    17. Hailu, Degol & Kipgen, Chinpihoi, 2017. "The Extractives Dependence Index (EDI)," Resources Policy, Elsevier, vol. 51(C), pages 251-264.
    18. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    19. O’Clery, Neave & Kinsella, Stephen, 2022. "Modular structure in labour networks reveals skill basins," Research Policy, Elsevier, vol. 51(5).
    20. Nhabinde, Simeão & Heshmati, Almas, 2020. "The Extractive Industry’s impact on Economic Growth in SADC Countries," GLO Discussion Paper Series 656, Global Labor Organization (GLO).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adb:adbwps:2369. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adeleke Oluwole Salami (email available below). General contact details of provider: https://edirc.repec.org/data/afdbgci.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.