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Changes in the Industrial Structure and Economic Growth

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  • Junko Doi

    (Institute of Economic Research, Kyoto University)

Abstract

The purpose of this paper is to study the mechanism that allows a new industry to become the leading industry, using a variety expanding model based on Grossman-Helpman (1991). For this, we introduce two types of industries, mature and new industries, which are characterized by the differences in their income elasticities. We find that the new industry can become leading when the efficiency of R&D in the new industry is higher and consumers prefer goods in that industry. In addition, we examine what happens during the transition.

Suggested Citation

  • Junko Doi, 2003. "Changes in the Industrial Structure and Economic Growth," KIER Working Papers 567, Kyoto University, Institute of Economic Research.
    • Handle: RePEc:kyo:wpaper:567
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