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Evolutionary Micro-dynamics and Changes in the Economic Structure

Listed author(s):
  • Maria Savona

    ()

    (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS - Université Lille 1 - Sciences et technologies)

  • André Lorentz

The paper aims to account for the empirical stylised facts related to changes in sectoral structures that have led to the growth of services in most advanced countries over recent decades. A growth model with evolutionary micro-founded structural change is developed, which formalises the role of technical change and changes in intermediate demand as they affect the evolution of the sectoral composition of the economy and macro-economic growth. Firstly, we provide a micro-foundation for the Kaldorian Cumulative Causation mechanism. Secondly, we account for (demand-related) macro-constraints affecting the micro-behaviour of firms in the decision to adopt technology. We also formalise the mechanisms transmitting the effects of micro-behaviour on aggregate growth, via changes in the intermediate linkages and sectoral composition of the economy. The simulated results are based on the use of the actual data, including Input-Output (I-O) coefficients in the case of Germany. Three scenarios are identified, which account for the effects of a set of key parameters on changes in the structure of the economy.

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Paper provided by HAL in its series Post-Print with number halshs-00284432.

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Date of creation: 2006
Publication status: Published in LEM (Laboratory of Economic and Management, School of Advanced Studies S. Anna, Pisa), 2006, http://www.lem.sssup.it/WPLem/files/2006-28.pdf
Handle: RePEc:hal:journl:halshs-00284432
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00284432
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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  1. Maria Savona & André Lorentz, 2005. "Demand and Technology Determinants of Structural Change and Tertiarisation: An Input-Output Structural Decomposition Analysis for four OECD Countries," LEM Papers Series 2005/25, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  2. Faïz Gallouj, 2000. "Knowledge-intensive Business Services: Processing Knowledge and Producing Innovation," Post-Print halshs-01113809, HAL.
  3. Michael Peneder & Serguei Kaniovski & Bernhard Dachs, 2003. "What follows tertiarisation? structural change and the role of knowledge-based services," The Service Industries Journal, Taylor & Francis Journals, vol. 23(2), pages 47-66, March.
  4. Schettkat, Ronald & Yocarini, Lara, 2006. "The shift to services employment: A review of the literature," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 127-147, June.
  5. Bart Verspagen, 2004. "Structural Change and Technology. A Long View," Revue économique, Presses de Sciences-Po, vol. 55(6), pages 1099-1125.
  6. Parrinello, Sergio, 2004. "The service economy revisited," Structural Change and Economic Dynamics, Elsevier, vol. 15(4), pages 381-400, December.
  7. Faridah Djellal & Faïz Gallouj, 2006. "Innovation, services, emplois," Post-Print halshs-00199647, HAL.
  8. G. Silverberg & B. Verspagen, 1995. "Evolutionary Theorizing on Economic Growth," Working Papers wp95078, International Institute for Applied Systems Analysis.
  9. Kox, Henk L.M. & Rubalcaba, Luis, 2007. "Analysing the contribution of business services to European economic growth," MPRA Paper 2003, University Library of Munich, Germany.
  10. Giovanni Dosi & Christopher Freeman & Richard Nelson & Gerarld Silverberg & Luc Soete (ed.), 1988. "Technical Change and Economic Theory," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1988, August.
  11. Maria Savona & Giulio Cainelli & Rinaldo Evangelista, 2006. "Innovation and economic performance in services. A firm level analysis," Post-Print halshs-00231578, HAL.
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