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Unbalanced Growth

Author

Listed:
  • Kala Krishna
  • Cesar A. Perez

Abstract

We study a model designed to understand the concept of unbalanced growth. We define leading sectors to be those that raise the profits from industrialization for other sectors the most. We identify the leading sectors and show that subsidizing them in sequences will raise welfare if the future is not discounted too strongly.

Suggested Citation

  • Kala Krishna & Cesar A. Perez, 2004. "Unbalanced Growth," NBER Working Papers 10899, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:10899
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    References listed on IDEAS

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    1. Kiminori Matsuyama, 1995. "Complementarities and Cumulative Processes in Models of Monopolistic Competition," Journal of Economic Literature, American Economic Association, vol. 33(2), pages 701-729, June.
    2. Kala Krishna & César Pérez, 2005. "Unbalanced growth," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 832-851, August.
    3. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1989. "Industrialization and the Big Push," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1003-1026, October.
    4. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62, pages 143-143.
    5. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-839, December.
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    Cited by:

    1. Kala Krishna & César Pérez, 2005. "Unbalanced growth," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 832-851, August.
    2. Mehmet Demiral, 2016. "Has EU Accession Caused Structural Change in New Entrants? Intersectoral Linkage Analyses on Bulgaria and Romania," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 671-681.

    More about this item

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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