Advanced Search
MyIDEAS: Login to save this paper or follow this series

Impacts of Intermediate Trade on Structural Change

Contents:

Author Info

  • Stijepic, Denis
  • Wagner, Helmut

Abstract

Traditional structural change theories study the dynamics of inter-sector labour-reallocation in autarky models. We analyse how model-results change if open economy setting is assumed, where we focus on the impacts of intermediate trade in a multi-sector growth model with capital accumulation. We show that, when controlling for specialisation-effects, open economy features a relatively high employment share of capital/manufacturing sector and a relatively low rate of labour-reallocation across consumption industries in comparison to autarky. The process of tertiarisation (transition to a services economy) is relatively slow in the intermediate trade model in comparison to the autarky model.

Download Info

If 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.
File URL: http://mpra.ub.uni-muenchen.de/40841/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40841.

as in new window
Length:
Date of creation: Feb 2008
Date of revision: 23 Aug 2012
Handle: RePEc:pra:mprapa:40841

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: structural change; factor reallocation; labour; multi-sector growth modelling; neoclassical growth theory; trade; intermediates; offshoring;

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Stijepic, Denis & Wagner, Helmut, 2009. "Kuznets-Kaldor-puzzle, neutral structural change and independent preferences and technologies," MPRA Paper 37162, University Library of Munich, Germany, revised 07 Mar 2012.
  2. Pol Antràs & Luis Garicano & Esteban Rossi-Hansberg, 2005. "Offshoring in a Knowledge Economy," NBER Working Papers 11094, National Bureau of Economic Research, Inc.
  3. repec:hrv:faseco:4784031 is not listed on IDEAS
  4. Fagerberg, Jan, 2000. "Technological progress, structural change and productivity growth: a comparative study," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 11(4), pages 393-411, December.
  5. Chang-Tai Hsieh & Peter J. Klenow, 2003. "Relative prices and relative prosperity," Proceedings, Federal Reserve Bank of San Francisco, Federal Reserve Bank of San Francisco, issue Nov.
  6. Stijepic, Denis & Wagner, Helmut, 2011. "Implementation of technological breakthroughs at sector level and the technology-bias," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis, Verein für Socialpolitik / German Economic Association 48707, Verein für Socialpolitik / German Economic Association.
  7. Maddison, Angus, 1987. "Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 25(2), pages 649-98, June.
  8. Mary Amiti & Jozef Konings, 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia," American Economic Review, American Economic Association, American Economic Association, vol. 97(5), pages 1611-1638, December.
  9. Powell, Andrew, 1991. "Commodity and Developing Country Terms of Trade: What Does the Long Run Show?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 101(409), pages 1485-96, November.
  10. Baumol, William J. & Batey Blackman, Sue Anne & Wolff, Edward N., 1984. "Unbalanced Growth Revisited: Asymptotic Stagnancy and New Evidence," Working Papers, C.V. Starr Center for Applied Economics, New York University 84-02, C.V. Starr Center for Applied Economics, New York University.
  11. Margarida Duarte & Diego Restuccia, 2006. "The Role of the Structural Transformation in Aggregate Productivity," 2006 Meeting Papers, Society for Economic Dynamics 415, Society for Economic Dynamics.
  12. Rachel Ngai & Christopher Pissarides, 2006. "Trends in Hours and Economic Growth," 2006 Meeting Papers, Society for Economic Dynamics 56, Society for Economic Dynamics.
  13. Akos Valentinyi & Berthold Herrendorf, 2008. "Measuring Factor Income Shares at the Sector Level," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 820-835, October.
  14. 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, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(2), pages 431-52, May.
  15. John Haltiwanger & C J Krizan & Lucia Foster, 1998. "Aggregate Productivity Growth: Lessons From Microeconomic Evidence," Working Papers, Center for Economic Studies, U.S. Census Bureau 98-12, Center for Economic Studies, U.S. Census Bureau.
  16. Piyabha Kongsamut & Sergio Rebelo & Danyang Xie, 1997. "Beyond Balanced Growth," NBER Working Papers 6159, National Bureau of Economic Research, Inc.
  17. Richard Disney & Jonathan Haskel & Ylva Heden, 2003. "Restructuring and productivity growth in uk manufacturing," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 113(489), pages 666-694, 07.
  18. Mihir A. Desai & C. Fritz Foley & James R. Hines Jr., 2005. "Foreign Direct Investment and Domestic Economic Activity," NBER Working Papers 11717, National Bureau of Economic Research, Inc.
  19. Timothy Uy & Kei-Mu Yi & Jing Zhang, 2013. "Structural change in an open economy," Working Paper Series, Federal Reserve Bank of Chicago WP-2013-09, Federal Reserve Bank of Chicago.
  20. Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 2004. "The Muddles over Outsourcing," International Trade, EconWPA 0408004, EconWPA.
  21. Ngai, Liwa Rachel & Pissarides, Christopher, 2004. "Structural Change in a Multi-Sector Model of Growth," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4763, C.E.P.R. Discussion Papers.
  22. Andrés Rodríguez-Clare, 2007. "Offshoring in a Ricardian World," Working Papers id:1043, eSocialSciences.
  23. Bernard, Andrew B & Jones, Charles I, 1996. "Comparing Apples to Oranges: Productivity Convergence and Measurement across Industries and Countries," American Economic Review, American Economic Association, American Economic Association, vol. 86(5), pages 1216-38, December.
  24. Kapur, Basant K., 2012. "Progressive services, asymptotically stagnant services, and manufacturing: Growth and structural change," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 36(9), pages 1322-1339.
  25. Gundlach, Erich, 1993. "Demand bias as an explanation for structural change," Kiel Working Papers 594, Kiel Institute for the World Economy.
  26. Robert Rowthorn & Ramana Ramaswamy, 1999. "Growth, Trade, and Deindustrialization," IMF Staff Papers, Palgrave Macmillan, vol. 46(1), pages 2.
  27. Foellmi, Reto & Zweimüller, Josef, 2008. "Structural change, Engel's consumption cycles and Kaldor's facts of economic growth," Journal of Monetary Economics, Elsevier, Elsevier, vol. 55(7), pages 1317-1328, October.
  28. Restuccia, Diego & Yang, Dennis Tao & Zhu, Xiaodong, 2008. "Agriculture and aggregate productivity: A quantitative cross-country analysis," Journal of Monetary Economics, Elsevier, Elsevier, vol. 55(2), pages 234-250, March.
  29. Jens J. Krüger, 2008. "Productivity And Structural Change: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 22(2), pages 330-363, 04.
  30. Pinelopi Goldberg & Amit Khandelwal & Nina Pavcnik & Petia Topalova, 2009. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," Working Papers, Princeton University, Department of Economics, Center for Economic Policy Studies. 1179, Princeton University, Department of Economics, Center for Economic Policy Studies..
  31. Kiminori Matsuyama, 2009. "Structural Change in an Interdependent World: A Global View of Manufacturing Decline," Journal of the European Economic Association, MIT Press, MIT Press, vol. 7(2-3), pages 478-486, 04-05.
  32. Meckl, Jürgen, 1999. "Structural change and generalized balanced growth," Discussion Papers, Series 1, University of Konstanz, Department of Economics 298, University of Konstanz, Department of Economics.
  33. Broadberry, S N, 1997. "The Long Run Growth and Productivity Performance of the United Kingdom," Scottish Journal of Political Economy, Scottish Economic Society, Scottish Economic Society, vol. 44(4), pages 403-24, September.
  34. Jonathan Eaton & Samuel Kortum, 2004. "Trade in Capital Goods," Levine's Working Paper Archive 228400000000000019, David K. Levine.
  35. Margaret S. McMillan & Dani Rodrik, 2011. "Globalization, Structural Change and Productivity Growth," NBER Working Papers 17143, National Bureau of Economic Research, Inc.
  36. Hiroyuki Kasahara & Joel Rodrigue, 2005. "Does the Use of Imported Intermediates Increase Productivity? Plant-Level Evidence," University of Western Ontario, Economic Policy Research Institute Working Papers, University of Western Ontario, Economic Policy Research Institute 20057, University of Western Ontario, Economic Policy Research Institute.
  37. Robinson, Sherman, 1971. "Sources of Growth in Less Developed Countries: A Cross-Section Study," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 85(3), pages 391-408, August.
  38. Cristina Echevarria, 1995. "Agricultural Development vs. Industrialization: Effects of Trade," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 28(3), pages 631-47, August.
  39. Gene M. Grossman & Esteban Rossi-Hansberg, 2006. "Trading Tasks: A Simple Theory of Offshoring," NBER Working Papers 12721, National Bureau of Economic Research, Inc.
  40. Dowrick, Steve & Gemmell, Norman, 1991. "Industrialisation, Catching Up and Economic Growth: A Comparative Study across the World's Capitalist Economies," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 101(405), pages 263-75, March.
  41. N. Gregory Mankiw & Phillip Swagel, 2006. "The Politics and Economics of Offshore Outsourcing," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 2120, Harvard - Institute of Economic Research.
  42. Hélène Poirson, 2000. "The Impact of Intersectoral Labor Reallocationon Economic Growth," IMF Working Papers, International Monetary Fund 00/104, International Monetary Fund.
  43. Daron Acemoglu & Veronica Guerrieri, 2006. "Capital Deepening and Non-Balanced Economic Growth," 2006 Meeting Papers, Society for Economic Dynamics 207, Society for Economic Dynamics.
  44. Broadberry, Stephen N., 1998. "How Did the United States and Germany Overtake Britian? A Sectoral Analysis of Comparative Productivity Levels, 1870–1990," The Journal of Economic History, Cambridge University Press, Cambridge University Press, vol. 58(02), pages 375-407, June.
  45. Schettkat, Ronald & Yocarini, Lara, 2006. "The shift to services employment: A review of the literature," Structural Change and Economic Dynamics, Elsevier, Elsevier, vol. 17(2), pages 127-147, June.
  46. Michael Peneder, 2002. "Industrial Structure and Aggregate Growth," WIFO Working Papers, WIFO 182, WIFO.
  47. Paul A. Samuelson, 2004. "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 18(3), pages 135-146, Summer.
  48. Choi, E. Kwan, 2007. "To Outsource or Not to Outsource in an Integrated World," Staff General Research Papers, Iowa State University, Department of Economics 12535, Iowa State University, Department of Economics.
  49. Broadberry, Stephen N. & Irwin, Douglas A., 2006. "Labor productivity in the United States and the United Kingdom during the nineteenth century," Explorations in Economic History, Elsevier, Elsevier, vol. 43(2), pages 257-279, April.
  50. David Hummels & Jun Ishii & Kei-Mu Yi, 1999. "The nature and growth of vertical specialization in world trade," Staff Reports, Federal Reserve Bank of New York 72, Federal Reserve Bank of New York.
  51. Steger Thomas M., 2006. "Heterogeneous Consumption Goods, Sectoral Change, and Economic Growth," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, De Gruyter, vol. 10(1), pages 1-18, March.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40841. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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