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De-industrialisation and the post-communist transition: Rowthorn and Wells' model revisited

Listed author(s):
  • Tomasz Marek Mickiewicz

    ()

    (UCL School of Slavonic and East European Studies)

  • Anna Zalewska

    (University of Bath)

In this paper we present a simple three-sector model explaining the structural change in employment, which is a modified version of Rowthorn-Wells (1987). We supplement the theoretical analysis with simple econometric tests, which illustrate how the modified Rowthorn-Wells model can be used to (i) motivate empirical estimates of the link between the level of development and structures of employment, (ii) illustrate structural distortions under the command economies, and the structural adjustment that happened during the post-Communist transition. We demonstrate that in the case of these economies, the transition process leads to an adjustment to the employment structures predicted by the model.

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Paper provided by UCL School of Slavonic and East European Studies (SSEES) in its series UCL SSEES Economics and Business working paper series with number 59.

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Length: 27 pages
Date of creation: Oct 2005
Handle: RePEc:see:wpaper:59
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  1. Oulton, Nicholas, 2001. "Must the Growth Rate Decline? Baumol's Unbalanced Growth Revisited," Oxford Economic Papers, Oxford University Press, vol. 53(4), pages 605-627, October.
  2. Falcetti, Elisabetta & Raiser, Martin & Sanfey, Peter, 2002. "Defying the Odds: Initial Conditions, Reforms, and Growth in the First Decade of Transition," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 229-250, June.
  3. Roland Dohrn & Ullrich Heilemann, 1996. "The Chenery hypothesis and structural change in Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(2), pages 411-425, October.
  4. Gérard Roland, 2004. "Transition and Economics: Politics, Markets, and Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 026268148x, July.
  5. repec:hoo:wpaper:e-92-3 is not listed on IDEAS
  6. Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
  7. Gros,Daniel & Steinherr,Alfred, 2004. "Economic Transition in Central and Eastern Europe," Cambridge Books, Cambridge University Press, number 9780521826389, November.
  8. Broadberry, Stephen N., 1993. "Manufacturing and the Convergence Hypothesis: What the Long-Run Data Show," The Journal of Economic History, Cambridge University Press, vol. 53(04), pages 772-795, December.
  9. Bruno Merlevede, 2003. "Reform reversals and output growth in transition economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 649-669, December.
  10. Crafts, Nicholas, 1996. "Deindustrialisation and Economic Growth," Economic Journal, Royal Economic Society, vol. 106(434), pages 172-183, January.
  11. Barry Bluestone, 1983. "Deindustrialization and unemployment in America," The Review of Black Political Economy, Springer;National Economic Association, vol. 12(3), pages 27-42, March.
  12. Temple, Jonathan, 2001. "Structural Change and Europe's Golden Age," CEPR Discussion Papers 2861, C.E.P.R. Discussion Papers.
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