Kuznets and Pasinetti on the Study of Structural Transformation: Never the Twain Shall Meet?
The main characteristics of the economic growth of nations are a sustained increase in the growth of output and factor productivity and a widespread process of structural transformation. In this paper I contrast two of the few important authors that do not ignore structural change: Kuznets and Pasinetti. Over several decades the two approaches have developed in an almost orthogonal manner. I discuss the reasons and evaluate the use of the approaches in the study of economic development.
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