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Price of investment goods and structural change: analysis of the Korean economy

Author

Listed:
  • Lhakpa Sherpa

    (The University of the South)

Abstract

Using the Korean economy to calibrate a two-sector growth model, I study the quantitative effects of price of investment goods on the process of structural change. The model is able to match several features of the economy and has implications for sectoral value-added and employment shares. In particular, I find that the decline in the price of investment goods decreases the value-added and employment shares in the agricultural sector.

Suggested Citation

  • Lhakpa Sherpa, 2023. "Price of investment goods and structural change: analysis of the Korean economy," Economics Bulletin, AccessEcon, vol. 43(2), pages 978-991.
    • Handle: RePEc:ebl:ecbull:eb-22-00016
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2023/Volume43/EB-23-V43-I2-P79.pdf
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    References listed on IDEAS

    as
    1. Kiminori Matsuyama, 2009. "Structural Change in an Interdependent World: A Global View of Manufacturing Decline," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 478-486, 04-05.
    2. Francisco J. Buera & Joseph P. Kaboski, 2009. "Can Traditional Theories of Structural Change Fit The Data?," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 469-477, 04-05.
    3. Sposi, Michael, 2019. "Evolving comparative advantage, sectoral linkages, and structural change," Journal of Monetary Economics, Elsevier, vol. 103(C), pages 75-87.
    4. 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.
    5. Alwyn Young, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 641-680.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Structural change; economic growth; economic reforms;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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