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Structural Change and Economic Growth: Production in the Short Run — A generalisation in terms of vertically hyper-integrated sectors

Listed author(s):
  • Garbellini, Nadia

Pasinetti’s (1981) Structural Change and Economic Growth provides a complete and far reaching theoretical framework for the study of structural change, and therefore of economic development, rooted in in the Classical-Sraffian tradition. Some attempts have been made, both in the ’80s — for instance Siniscalco (1982) and Momigliano & Siniscalco (1986) — and more recently — e.g. Montresor & Vittucci Marzetti (2007a) and Montresor & Vittucci Marzetti (2008) — to use this framework for empirical purposes. However, all these attempts are based on Pasinetti’s (1973) paper, i.e. on vertically integrated analysis. It is my contention that, as a consequence, they failed to recognise, and therefore to take advantage of, the main analytical feature of the 1981 book, namely vertical hyper-integration. Actually, when trying to overcome the simplifying assumptions made by Pasinetti (1981) as regards the description of the technique, the starting point should be Pasinetti (1988), and not Pasinetti (1973), the latter being an intermediate step leading to the former. The aim of the present paper is therefore, first of all, that of highlighting the key differences between Pasinetti (1973) and Pasinetti (1988), in order to show Pasinetti’s (1981) vertically hyper-integrated character. In the second place, the whole analytical framework provided by Pasinetti (1981) will be generalised by reintroducing inter-industry relations and allowing for more complex dynamics of economic magnitudes. This conceptual clarification and analytical generalisation is intended to be the first step of a line of research aiming at using, and extending, the present framework to perform empirical analyses and study the behaviour of actual economic systems.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25684.

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Date of creation: 20 May 2010
Handle: RePEc:pra:mprapa:25684
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  1. Nadia Garbellini & Ariel Luis Wirkierman, 2014. "Pasinetti's 'Structural Change and Economic Growth': A Conceptual Excursus," Review of Political Economy, Taylor & Francis Journals, vol. 26(2), pages 234-257, April.
  2. Sandro Montresor & Giuseppe Vittucci Marzetti, 2011. "The deindustrialisation/tertiarisation hypothesis reconsidered: a subsystem application to the OECD7," Cambridge Journal of Economics, Oxford University Press, vol. 35(2), pages 401-421.
  3. S. Montresor & Vittucci & G. Marzetti, 2008. "Constructing intersectoral innovation diffusion networks with input-output: how to get relative flows? An illustrative application to six OECD technological systems for the middle '90s," Working Papers 649, Dipartimento Scienze Economiche, Universita' di Bologna.
  4. Oscar De Juan & Eladio Febrero, 2000. "Measuring Productivity from Vertically Integrated Sectors," Economic Systems Research, Taylor & Francis Journals, vol. 12(1), pages 65-82.
  5. Montresor Sandro & Vittucci Marzetti Giuseppe, 2007. "Outsourcing and Structural Change: What Can Input-Output Analysis Say About It?," Economia politica, Società editrice il Mulino, issue 1, pages 43-78.
  6. S. Montresor & G. Vittucci Marzetti, 2006. "Outsourcing and structural change: shifting firm and sectoral boundaries," Working Papers 566, Dipartimento Scienze Economiche, Universita' di Bologna.
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