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A Theorem on the Limit-Properties of Structural Change and some Implications

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  • Stijepic, Denis

Abstract

Recent growth literature studies structural change in relatively specific three-sector growth models with a focus on the agriculture-manufacturing-services structure. In this paper we take another approach for studying this structural change. By using only few axioms on the properties of structural change trajectories and some mathematical theorems on the limit-properties of trajectories in the plane, we show that structural change in a three-sector framework is a relatively simple process: it is either transitory or cyclical unless there are some “exogenous” driving forces. We elaborate the implications of this result for the structural change modelling literature and topics for further research.

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  • Stijepic, Denis, 2014. "A Theorem on the Limit-Properties of Structural Change and some Implications," MPRA Paper 57580, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:57580
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    References listed on IDEAS

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    1. Francisco J. Buera & Joseph P. Kaboski, 2009. "Can Traditional Theories of Structural Change Fit The Data?," Journal of the European Economic Association, MIT Press, vol. 7(2-3), pages 469-477, 04-05.
    2. Foellmi, Reto & Zweimüller, Josef, 2008. "Structural change, Engel's consumption cycles and Kaldor's facts of economic growth," Journal of Monetary Economics, Elsevier, vol. 55(7), pages 1317-1328, October.
    3. Piyabha Kongsamut & Sergio Rebelo & Danyang Xie, 2001. "Beyond Balanced Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(4), pages 869-882.
    4. Mr. Sergio Rebelo & Ms. Piyabha Kongsamut & Danyang Xie, 2001. "Beyond Balanced Growth," IMF Working Papers 2001/085, International Monetary Fund.
    5. L. Rachel Ngai & Christopher A. Pissarides, 2007. "Structural Change in a Multisector Model of Growth," American Economic Review, American Economic Association, vol. 97(1), pages 429-443, March.
    6. Daron Acemoglu & Veronica Guerrieri, 2008. "Capital Deepening and Nonbalanced Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 116(3), pages 467-498, June.
    7. Herrendorf, Berthold & Rogerson, Richard & Valentinyi, Ákos, 2014. "Growth and Structural Transformation," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 6, pages 855-941, Elsevier.
    8. Stijepic, Denis, 2015. "A geometrical approach to structural change modelling," Structural Change and Economic Dynamics, Elsevier, vol. 33(C), pages 71-85.
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    1. Stijepic, Denis, 2015. "A geometrical approach to structural change modelling," Structural Change and Economic Dynamics, Elsevier, vol. 33(C), pages 71-85.

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    More about this item

    Keywords

    structure; dynamics; differential equation systems; limit; Poincaré-Bendixon-theory;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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