Dynamics of structural transformation: An empirical characterization in the case of China, Malaysia, and Ghana
Abstract"The paper develops a metric of structural transformation that can account for the production of new varieties of goods embodying advancements in technological know-how and design. Our measure captures the dynamics of an economy's transformation and can be viewed as an extension of Hausmann and Klinger's static measure. We apply our measure to four-digit-level SITC trade data of China, Malaysia, and Ghana over the period 1962–2000. The results show that two important factors characterize the rapid transformation of the Chinese economy: the high proximity of its export basket to three main industrial clusters—capital goods, consumer durable goods, and intermediate inputs—and the increase in the values of the new goods belonging to those three clusters. Malaysia exhibits a similar but more modest pattern. In contrast, the structure of the Ghanaian economy appears unchanged over the entire 1962–2000 period. That economy is dominated by primary goods clusters, and the values of the goods in those clusters have remained relatively low. We also discuss qualitatively the role of policies and institutions in spurring transformation in the three countries." from authors' abstract
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 InfoPaper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 856.
Date of creation: 2009
Date of revision:
Structural transformation; Discovery; technological change; Development strategies;
This paper has been announced in the following NEP Reports:
- NEP-AFR-2009-04-18 (Africa)
- NEP-ALL-2009-04-18 (All new papers)
- NEP-CNA-2009-04-18 (China)
- NEP-DEV-2009-04-18 (Development)
- NEP-SEA-2009-04-18 (South East Asia)
- NEP-TRA-2009-04-18 (Transition Economics)
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.:
- Segerstrom, Paul S & Anant, T C A & Dinopoulos, Elias, 1990. "A Schumpeterian Model of the Product Life Cycle," American Economic Review, American Economic Association, vol. 80(5), pages 1077-91, December.
- Grossman, Gene M & Helpman, Elhanan, 1991.
"Endogenous Product Cycles,"
Royal Economic Society, vol. 101(408), pages 1214-29, September.
- Grossman, G.M. & Helpman, E., 1989. "Endogemour Product Cycles," Papers 10-89, Tel Aviv.
- Gene M. Grossman & Elhanan Helpman, 1989. "Endogenous Product Cycles," NBER Working Papers 2913, National Bureau of Economic Research, Inc.
- Grossman, G.M. & Helpman, E., 1989. "Endogenous Prduct Cycles," Papers 144, Princeton, Woodrow Wilson School - Public and International Affairs.
- Arnaud Costinot, 2009.
"An Elementary Theory of Comparative Advantage,"
Econometric Society, vol. 77(4), pages 1165-1192, 07.
- Gene M. Grossman & Elhanan Helpman, 1991.
"Quality Ladders in the Theory of Growth,"
NBER Working Papers
3099, National Bureau of Economic Research, Inc.
- Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2005.
"What You Export Matters,"
Working Paper Series
rwp05-063, Harvard University, John F. Kennedy School of Government.
- Grossman, Gene M & Helpman, Elhanan, 1990.
"Trade, Innovation, and Growth,"
American Economic Review,
American Economic Association, vol. 80(2), pages 86-91, May.
- Romer, Paul M, 1990.
"Endogenous Technological Change,"
Journal of Political Economy,
University of Chicago Press, vol. 98(5), pages S71-102, October.
- Grossman, G.M. & Helpman, E., 1989.
"Growth And Welfare In A Small Open Economy,"
15-89, Tel Aviv.
- Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
- Grossman, G.M. & Helpman, E., 1988.
"Product Development And International Trade,"
132, Princeton, Woodrow Wilson School - Public and International Affairs.
- Gene M. Grossman & Elhanan Helpman, 1990. "Product Development and International Trade," NBER Working Papers 2540, National Bureau of Economic Research, Inc.
- Grossman, Gene M. & Helpman, Elhanan, 1989. "Product Development and International Trade," Scholarly Articles 3445094, Harvard University Department of Economics.
- Grossman, G.M., 1989.
"Explaining Japan'S Innovation And Trade: A Model Of Quality Competition And Dynamic Comparative Advantage,"
151, Princeton, Woodrow Wilson School - Public and International Affairs.
- Gene M. Grossman, 1989. "Explaining Japan's Innovation and Trade: A model of Quality Competition and Dynamic Comparive Advantage," NBER Working Papers 3194, National Bureau of Economic Research, Inc.
- Nancy L Stokey, 1986.
"Learning-by-Doing and the Introduction of New Goods,"
699, Northwestern University, Center for Mathematical Studies in Economics and Management Science, revised May 1987.
- Stokey, Nancy L, 1988. "Learning by Doing and the Introduction of New Goods," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 701-17, August.
- Robert Koopman & Zhi Wang & Shang-Jin Wei, 2008. "How Much of Chinese Exports is Really Made In China? Assessing Domestic Value-Added When Processing Trade is Pervasive," NBER Working Papers 14109, National Bureau of Economic Research, Inc.
- Rodrik, Dani, 2004.
"Industrial Policy for the Twenty-First Century,"
CEPR Discussion Papers
4767, C.E.P.R. Discussion Papers.
- Jeffrey D. Sachs & Andrew M. Warner, 1995.
"Natural Resource Abundance and Economic Growth,"
NBER Working Papers
5398, National Bureau of Economic Research, Inc.
- Balassa, Bela, 1986. "Comparative Advantage in Manufactured Goods: A Reappraisal," The Review of Economics and Statistics, MIT Press, vol. 68(2), pages 315-19, May.
- Ulimwengu, John M. & Badibanga, ThaddÃ©e, 2012.
"The sophistication and diversification of the African agricultural sector: A product space approach,"
IFPRI discussion papers
1156, International Food Policy Research Institute (IFPRI).
- Badibanga, Thaddee Mutumba & Ulimwengu, John M., 2012. "The Sophistication and Diversification of the African Agricultural Sector: A Product Space Approach," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124498, Agricultural and Applied Economics Association.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.