New Structural Economics : A Framework for Rethinking Development and Policy
The new structural economics argues that the best way to upgrade a country's endowment structure is to develop its industries at any specific time according to the comparative advantages determined by its given endowment structure at that time...
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| Format: | Publication |
| Language: | English |
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Washington, DC: World Bank
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000356161_20120113025555 http://hdl.handle.net/10986/2232 |
| Summary: | The new structural economics argues that
the best way to upgrade a country's endowment structure
is to develop its industries at any specific time according
to the comparative advantages determined by its given
endowment structure at that time. The economy will be most
competitive, the economic surplus will be the largest, and
the capital accumulation and the upgrading of factor
endowment structure will be the fastest possible. The
'New Structural Economics' presented in this book
is an attempt to set out this third wave of development
thinking. Taking into account the lessons learned from the
growth successes and failures of the last decades, it
advances a neoclassical approach to study the determinants
and dynamics of economic structure. It postulates that the
economic structure of an economy is endogenous to its factor
endowment structure and that sustained economic development
is driven by changes in factor endowments and continuous
technological innovation. The paper also discusses binding
constraints to growth in each of these industries'
value chains as well as mechanisms through which
governance-related issues in the implementation of
industrial policy could be addressed. |
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