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The growth report and new structural economics

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  • Lin, Justin Yifu
  • Monga, Celestin

Abstract

Despite its heavy human, financial, and economic cost, the recent global recession provides a unique opportunity to reflect on the knowledge from several decades of growth research, draw policy lessons from the experience of successful countries, and explore new approaches going forward. In an increasingly globalized world where fighting poverty is not only a moral responsibility but also a strategy for confronting some of the major problems (diseases, malnutrition, insecurity and violence) that ignore boundaries and contribute to global insecurity, thinking about new ways of generating and sustaining growth is a crucial task for economists. This paper reassesses the evolution of knowledge on growth and suggests a new structural approach to the analysis. It offers a brief, critical review of lessons learned from growth research and examines the remaining challenges -- especially from the policy standpoint. It highlights how the 2008 Growth Commission Report identifies the stylized facts associated with sustained and inclusive growth. And it explains how the new structural economics provides a consistent framework for understanding the key findings of the Report.

Suggested Citation

  • Lin, Justin Yifu & Monga, Celestin, 2010. "The growth report and new structural economics," Policy Research Working Paper Series 5336, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5336
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    References listed on IDEAS

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    2. Keijiro Otsuka & Tetsushi Sonobe, 2011. "A Cluster-Based Industrial Development Policy for Low-Income Countries," GRIPS Discussion Papers 11-09, National Graduate Institute for Policy Studies.
    3. World Bank, 2013. "Pakistan : Finding the Path to Job-Enhancing Growth," World Bank Publications - Reports 15979, The World Bank Group.
    4. P.V. Srinivasan, 2013. "Dynamics of structural transformation in South Asia," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 20(2), pages 53-88, December.
    5. Oyamada, Kazuhiko & Uchida, Yoko, 2011. "Production patterns of Multinational Firms: Horizontal and Vertical Multinationals with traded intermediates," Conference papers 332063, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Wang, Can & Deng, Mengzhi & Deng, Junfeng, 2020. "Factor reallocation and structural transformation implications of grain subsidies in China," Journal of Asian Economics, Elsevier, vol. 71(C).
    7. Christina Wieser, 2011. "Determinants of the Growth Elasticity of Poverty Reduction. Why the Impact on Poverty Reduction is Large in Some Developing Countries and Small in Others," WIFO Working Papers 406, WIFO.
    8. Georgy Idrisov, 2016. "Towards modern industrial policy for Russia," Research Paper Series, Gaidar Institute for Economic Policy, issue 169P, pages 157-157.
    9. Lin, Justin Yifu & Vu, Khuong Minh, 2014. "The practice of industrial policy: Lessons for Africa: Co-ordination through an Asian lens," WIDER Working Paper Series 156, World Institute for Development Economic Research (UNU-WIDER).
    10. Hickey, Sam, 2013. "Beyond the Poverty Agenda? Insights from the New Politics of Development in Uganda," World Development, Elsevier, vol. 43(C), pages 194-206.
    11. World Bank, 2010. "Belarus - Industrial Performance Before and During the Global Crisis : Belarus Economic Policy Notes : Note No. 2," World Bank Publications - Reports 2908, The World Bank Group.
    12. Bethelehem Berhane Kidane, 2014. "The Effect of Improved Productivity of the Manufacturing Industries on the Ethiopian Economy: a Computable General Equilibrium (CGE) Analysis," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 22(1), November.
    13. Lin, Justin Yifu & Treichel, Volker, 2011. "Applying the growth identification and facilitation framework : the case of Nigeria," Policy Research Working Paper Series 5776, The World Bank.
    14. Mbaye Ahmadou Aly & Gueye Fatou, 2018. "Working Paper 297 - Labor Markets and Jobs in West Africa," Working Paper Series 2424, African Development Bank.
    15. Vu, K.M., 2017. "Structural change and economic growth: Empirical evidence and policy insights from Asian economies," Structural Change and Economic Dynamics, Elsevier, vol. 41(C), pages 64-77.
    16. El-Haddad, Amirah, 2018. "Exporting for growth: identifying leading sectors for Egypt and Tunisia using the Product Space Methodology," IDOS Discussion Papers 25/2018, German Institute of Development and Sustainability (IDOS).
    17. Justin Yifu Lin & Khuong Minh Vu, 2014. "The Practice of Industrial Policy - Lessons for Africa: Co-ordination Through an Asian Lens," WIDER Working Paper Series wp-2014-156, World Institute for Development Economic Research (UNU-WIDER).

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    Keywords

    Economic Theory&Research; Achieving Shared Growth; Economic Growth; Political Economy; Inequality;
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